The 4G smartphone market share rose to 86% compared to Q1 2023, while 5G market share fell 4.3% YoY, the first drop since 2020.
Heaptalk, Jakarta — The smartphone market in Indonesia experienced a weakening of 6.3% in Q2 2023. This figure marks a downturn for eight consecutive quarters according to International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker. However, seasonally the market grew 13.8% quarter-over-quarter (QoQ) to 8.9 million units.
In more detail, IDC revealed that the growth in the entry-level segment has contributed to strengthening the market until the decline is only single-digit as most of the key players saw increased shipments in this segment. Therefore, the 4G smartphone market share also rose by 4% to 86% compared to Q1.
Meanwhile, the 5G market share fell 4.3% YoY, the first drop since 5G appeared on the market in 2020. High-priced smartphones in the >US$600 segment grew 71% YoY with tight competition between Samsung and Apple.
Associate Market Analyst at IDC Indonesia Vanessa Aurelia conveyed that 5G phone adoption has been slow due to challenges on both the demand and supply sides. She explained, “5G smartphone share is still very small compared to 4G smartphones. While it has become more affordable, their 4G counterparts often have much better specs with similar prices. As 5G connectivity is still limited to only certain areas, 5G as a feature doesn’t provide enough enticement for potential new consumers.”
Vanessa further added that the low penetration rate of 5G smartphones caused telcos to remain cautious in their 5G investments, considering factors such as cost and overall rate of return. “IDC expects the market has bottomed out and we should see consumer demand and the supply across different price bands to stabilize as vendors prepare to increase their sales in the year-end holiday period, although full year 2023 smartphone shipment will be lowest since 2018,” said Vanessa.
Newcomer Transsion replaces Realme, Samsung remains on top
Samsung held on to the top position with the same total shipments in Q1 2023 of 1.9 million units. However, its market share fell 3.2% from the previous quarter to 20.8%. In Q2 of the previous year, Samsung recorded 1.9 million total shipments with a market share of 20.2%.
Oppo still ranked second with total shipments decreasing by 0.2 million units from Q1 2023 to 1.6 million units. Aligned with that, its market share also fell from 23.3% in the previous quarter to 17.6%. In the same period the previous year, Oppo achieved 2.0 million total shipments and 20.6% market share.
Vivo was in third place showing an increase in total shipments of 0.2 million units from the previous quarter to 1.5 million units. With increasing shipments, this brand maintained a market share of 16.5%. In Q2 2022, Vivo recorded higher total shipments of 1.7 million units with a market share of 17.8%.
Xiaomi remained in fourth position with total shipments reaching 1.3 million units, which rose 0.2 million from Q1 2023. This increment boosted its market share by 1% to 14.7% in Q2 2023. However, in Q2 2022 Xiaomi recorded better results with total shipments reaching 1.5 million units and a market share of 15.6%.
Transsion as a newcomer reached the fifth rank with a total shipment of 1.5 million units, shifting Realme. The Shenzhen-based mobile phone manufacturer gained 13.4% market share, higher than Q2 2022 which reached 11.2%. Transsion produces three smartphone brands, namely Infinix, Tecno, and Itel.
