Smartphone Shipments in Indonesia Drop 14.3% in 2022: Who's the Top Phone Brand in Indonesia?

An International Data Corporation (IDC) report reveals a decline in Indonesia's smartphone market last year. Smartphone sales in Indonesia totaled 35 million units in 2022, a 14.3% year-on-year (YoY) decrease.

IDC Indonesia Associate Market Analyst Vanessa Aurelia stated that the 2022 decline in smartphone shipments marks the first downturn for the Indonesian smartphone market after thirteen consecutive years of positive growth.

"Economic factors such as inflation have significantly impacted consumer purchasing power, particularly among low-income groups who prioritize essential goods," Vanessa said in a press release on Wednesday, February 15, 2023.

She added that the decrease in smartphone shipments was also due to a shift in consumer spending towards other areas, such as travel, as people resumed pre-pandemic activities.

In terms of price segments, Vanessa noted that devices priced under US$200 still dominated the Indonesian smartphone market, contributing approximately 74% of the overall market. However, this segment was the most affected in 2022, with shipments shrinking by 19.8% YoY.

Meanwhile, the mid-range (US$200 - US$400) and upper mid-range (US$400 - US$600) segments experienced a combined growth of 3.6% YoY, led by Oppo.

Conversely, higher-priced devices (over US$600) performed better in 2022, showing a 36.9% YoY growth, driven by Apple and Samsung.

"Looking ahead, IDC expects (Indonesian smartphone shipments in) 2023 to be flat or experience low single-digit growth amidst the global battle against inflation, exchange rate fluctuations, geopolitical tensions, and monetary policies," Vanessa said.

She added that consumers will be more mindful of their spending, and companies will exercise greater caution in strategy formulation, readjusting their market approaches.

Furthermore, she continued, the lower-end segment is expected to remain weak due to increased spending in other areas. "On the other hand, the premium segment is expected to be more resilient as consumers seek better specifications and durability, while vendors also expand their portfolios with higher-priced offerings," Vanessa stated.

OPPO Remains Top Smartphone Brand in Indonesia

The IDC report shows OPPO maintaining its top position among the five best-selling smartphone vendors in Indonesia in 2022.

Shipments of the Chinese brand reached 7.8 million units throughout 2022, an 8% YoY decrease from 8.5 million units in 2021. Despite the decline in units, OPPO's market share in Indonesia increased from 20.8% in 2021 to 22.4% in 2022.

Samsung ranked second with 7.6 million units shipped. The South Korean brand was the only one to experience growth in Indonesia, recording a 5.4% YoY increase.

Vivo followed in third place with 6.3 million units shipped, a 15.2% YoY decrease. Xiaomi recorded 5 million units shipped, experiencing the steepest decline among the brands at 38.6% YoY.

Realme shipments also decreased by 17.1%, from 5 million units to 4.1 million units in 2022. Other vendors saw a 10.2% decrease in smartphone shipments, from 4.7 million units to 4.2 million units last year.