According to a report by the International Data Corporation (IDC), domestic smartphone shipments reached 8.9 million units in Q2 2023. This figure represents a 6.3% year-on-year (YoY) decline compared to the same period last year.
This decrease in smartphone shipments in Indonesia affected almost all of the world's top five brands.
Oppo experienced the steepest decline, with a 19.8% YoY drop to 1.6 million units in Q2 2023. Despite this, Oppo still dominates smartphone production among other Chinese manufacturers.
Samsung maintained the highest domestic smartphone shipments, with 1.9 million units. However, this still reflects a 3.4% YoY decrease.
Vivo recorded 1.5 million smartphone shipments in Q2 2023, a 13.1% YoY decrease. Xiaomi followed with 1.3 million units shipped, representing an 11.8% annual decline.
Conversely, shipments of Chinese brand Transsion increased by 9.1% YoY. This company, which owns the Techno, Itel, and Infinix brands, shipped 1.2 million smartphones during the April-June 2023 period.
Cumulatively, shipments of other smartphone brands increased by 9.1% to 1.5 million units in Q2 2023.
The 4G Smartphone Market Continues to Soar
Vanessa Aurelia, Associate Market Analyst at IDC Indonesia, explained that sales of 4G variant smartphones increased by 86% quarter-over-quarter (QoQ) in this quarter. Meanwhile, 5G smartphones experienced a 4.3% YoY decline for the first time since their emergence in 2020.
"The adoption of 5G phones is slow due to challenges on both the demand and supply sides. The market share of 5G smartphones is still very small compared to 4G smartphones," Aurelia stated in her report.
She added that although 4G smartphones are more affordable, they offer better specifications at comparable prices.
Furthermore, Aurelia noted that 5G connectivity is still limited to certain areas. Therefore, the 5G feature is not yet considered attractive enough to draw in new consumers.