As Apple engages in negotiations to lift the sales ban in Indonesia, a different Chinese smartphone manufacturer is expanding its presence in the country.

• Honor, a spinoff of Huawei, announced it will enter Indonesia and launch its smartphones there by the end of March.
• Apple's iPhone 16 is banned in a Southeast Asian country due to domestic production requirements.
• In November, Xiaomi, Oppo, and Transsion, all Chinese companies, were the top three smartphone shippers in Indonesia, according to Canalys.

Honor, a Huawei spinoff, announced it will launch smartphone sales in Indonesia by March, following in the footsteps of other Chinese companies that have entered the market despite a ban on Apple's iPhone 16 due to domestic production requirements.

The rule in Indonesia that mandates 40% of smartphone components to be domestically sourced has hindered Apple from selling its latest phone in the market, where it is currently in talks for a $1 billion investment.

Honor, a Chinese smartphone company, has an office in Indonesia and is collaborating with a local manufacturing partner, Justin Li, the president of South Pacific operations. According to Li, Honor will launch a folding phone as one of its first locally sold products in the medium to high-end segment, with a total of 10 items.

The company plans to launch approximately 30 products, ranging from smartphones to tablets, in Indonesia by the end of the year. Indonesia, with a population of over 270 million, is the fourth most populous country in the world, following the United States.

Despite the majority of the market being dominated by low-priced devices, Indonesia, as Southeast Asia's largest and fastest-growing economy, presents significant potential for long-term growth, according to Canalys analyst Chiew Le Xuan in an email.

Rapid economic growth and an expanding middle class are propelling Indonesia to become a crucial market in Southeast Asia, according to Chiew. The country's 35% share of smartphone shipments in the region makes it a valuable strategic hub.

In November, Oppo, Xiaomi, and Transsion, all Chinese companies, were the top three smartphone shippers in Indonesia, according to Canalys. Oppo launched its flagship Find X8 phone in Indonesia in November, where the company also has a factory.

According to Canalys data, Samsung and Vivo, both Chinese brands, had a 16% market share in Indonesia, placing them in a tie for fourth place.

Nearly 92% of Apple's sales originate outside of Asia-Pacific, excluding China and Japan.

Honor's expansion in Indonesia was not influenced by Apple's presence in the country, according to Li. He expressed confidence in Honor's ability to compete and stated that the company had been observing the Indonesian market for years before intensifying its expansion efforts in the last six months.

Li stated that Honor continues to hire in Indonesia and aims to have a predominantly local staff in the future, although he declined to provide a current breakdown of Indonesian to Chinese staff.

This year, Honor intends to launch at least 10 of its own stores in Indonesia, in addition to selling through a local retailer, Li stated.

For the first time in December, more than half of Honor's sales came from outside China, primarily in Europe and parts of Southeast Asia, where its phones are not directly sold in the U.S.

In November 2020, Honor, which was planning to go public, was spun off from Chinese telecommunications giant Huawei after the parent company was hit by U.S. sanctions. Huawei stated that it does not hold any shares in Honor and has no involvement in its business decisions.