An International Data Corporation (IDC) report reveals a downturn in Indonesia's smartphone market during the first nine months of this year. Smartphone sales in Indonesia reached 8.1 million units in Q3 2022, a 12.4% year-on-year (YoY) decrease.
IDC Indonesia's Associate Market Analyst, Vanessa Aurelia, attributes this decline to inflation, which reached 5.95% YoY in September 2022 following fuel price hikes (both subsidized and non-subsidized). She explains that these price increases negatively impacted consumer purchasing power and market demand.
“The pressure was felt most strongly in the ultra-low-end (under US$100) and low-end (US$100-200) segments, causing their combined market share to drop from 81% in Q3 2021 to 75%,” stated Vanessa Aurelia, IDC Indonesia Associate Market Analyst, as quoted from a press release on Tuesday (November 15th).
Meanwhile, she continued, the mid-range (US$200-400) segment remained relatively stable. Conversely, significant growth was observed in the segment above US$400 compared to lower price segments.
“Vendors strategically released their products and offered various discounts and cashback to stimulate demand,” said Vanessa.
Vanessa predicts continued pressure on Indonesia's smartphone market amidst global challenges including soaring inflation, volatile exchange rates, and rising interest rates.
“Therefore, overall smartphone shipments in 2022 are expected to be lower than last year,” she added.
IDC notes that OPPO maintained its top position among the five best-selling smartphone vendors in Indonesia.
The Chinese brand shipped 1.9 million units in Q3 2022. OPPO's market share in Indonesia also increased from 21.3% in Q3 of last year to 22.9% in Q3 2022.
Samsung ranked second with 1.8 million units shipped (21.6%) in Q3 2022. Vivo followed with 1.5 million units (18.8%). Xiaomi and Realme shipped 1.1 million units (13.6%) and 900,000 units (12.6%) respectively during the same period.
Other vendors shipped a combined 1 million units in Q3 2022, holding a 12.1% market share.