YotaPhone 2 launches in Indonesia at a price few can afford

YotaPhone’s second e-ink screen makes it unique.

Russian smartphone maker Yota yesterday launched its YotaPhone 2 in Indonesia. It’s the first time a Russian-made phone is sold in the archipelago.

The device is by no means brand new. It’s been available in Europe since 2014. What makes the Android-based phone stand out is that is has two screens. One is a regular LCD display, the other a low-power e-ink screen similar to what you find on Amazon’s Kindle.

YotaPhone’s partner in Indonesia is the relatively small phone distributor Maxindo Telemedia, which will handle customer support, Maxindo CEO Tri Sasono Kimas explained at the launch event. The device is sold online in partnership with local online shopping site Blibli.

It costs about US$659 – a very hefty price tag when you consider Indonesians’ usual preference for mid-range smartphones. High-end phones like the iPhone have traditionally been a hard sell.

Other new smartphone models launched in Indonesia this year are the Oppo F1, which positions itself as a phone ideal for selfies, and the Lenovo Vibe P1 Turbo with a focus on long battery life. They cost between US$260 and US$300.

Need to stand out

The YotaPhone launch shows how far phone distributors are willing to go to stand out in an increasingly crowded market. True, Yota’s two-screen set up is unique, but the model is old, the brand unknown, and the price too high. It’s unlikely the phone will be a hit with Indonesian buyers.

The launch in Indonesia also comes at a curious time. Not long ago, the government drew up a law that smartphones sold in the nation need to contain at least 30 percent locally produced parts. The rule is set to go into full effect by January 2017. Indonesia has been repeatedly critized for this move, intended to protect local manufacturers.

If a foreign smartphone manufacturer enters the market now, it can only mean two things. The first possibility is Yota already has a compliance strategy in place. Yota already has a compliance strategy in place. For that it would need to transfer part of the manufacturing process to Indonesia, or partner with local firms. The second possibility is that neither manufacturers nor local distributors are taking the new law seriously at this point.

Price converted from IDR. US$1 = IDR 13,489

A version of this article first appeared in Indonesian, written by Elfa Putri Setyanti. Information for this story was translated and modified.