INDONESIAN SMARTPHONE INDUSTRY SHARP Chance and Challenges – A Product Perspective

• Main Authors: Lin Tzu Hua, 林志華
• Other Authors: 洪俊德
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/xd8ka9

碩士 === 國立中央大學 === 企業管理學系在職專班 === 106 === Indonesia is an emerging smartphone market in Asia-Pacific region, placing after India. The landscape is dominated by foreign brands. Samsung is the leading brand, followed by OPPO, XiaoMi (unofficial), vivo and ASUS. Local brands are visible only in the lower price segment. Devices visible in the field are getting more and more expensive as penetration improves and economy growing. Indonesian government enacted TKDN (Local Content Regulation) to boost local companies’ performance in related industries. TKDN affected the growth in the last two years, making it flat. For years to come steep growth is expected as brands have gotten used to the changes in regulations. SHARP Smart Phone entered the market in 2015 with SHARP Aquos Crystal but found no success. In 2017, after acquired by Foxconn, SHARP Smart Phone re-entered the market under new direction. The first year in its second life SHARP released six models, SHARP Z2, M1, R1, Pi, R1s and A2 Lite. SHARP operates mainly in the entry level and mainstream 4G smartphone segment, with its costliest product falls under IDR 3 Million. SHARP Smart Phone is doing minimum branding effort believing in SHARP Electronics’ firm ground in the country. The distribution is entrusted to two local distributors with area division model. SHARP’s smartphone products are competitive in the market specification and quality wise. Market awareness of the brand as smartphone manufacturer is minimal. Sales is overwhelmed by other brands with enormous marketing spending. Competition in the market is very harsh. SHARP’s main solution so far is aggressive price cuts. SHARP’s strength lies in its foundation as home appliance company and thus should integrate its smartphone business as one solution to the market. The IOT (Internet of Things) division should work together in creating SHARP ecosystem as it is the future of gadget electronics. Keywords: SHARP, Indonesia, Smartphone, TKDN, Foxconn