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IDC Report: Indonesia’s smartphone market continues to decline by 12.4% in Q3 2022

Sinta by Sinta
April 17, 2023
in News
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smartphone market

Smartphone illustration. Photo by Jonas Leupe on Unsplash

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Heaptalk, Jakarta — The smartphone market in Indonesia faced another slow quarter in 2022 as International Data Corporation (IDC) recorded a 12.4% year-on-year (YoY) decline and a 14.6% quarter-on-quarter (QoQ) with total shipments of 8.1 million units.

The market remained restrained in the third quarter of 2022 as inflation soared to 5.95% YoY in September after the rising price of subsidized and non-subsidized fuel. Rising fuel prices affect consumer purchasing power and overall demand.

According to Associate Market Analyst at IDC Indonesia Vanessa Aurelia, the condition led to more pressure in the ultra-low-end (<US$100) and the low-end (US$100-US$200) segments as their combined share shrank to 75% compared to 81% in Q3 2021. Meanwhile, the midrange (US$200-US$400) segment remained stable.

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“On the other hand, significant strengthening can be seen in the >US$400 segment, as demand there stayed relatively inelastic compared to the lower price segments. Vendors are being strategic with their product releases, while also offering various discounts and cashback to spur demand,” said Vanessa Aurelia.

Amidst global inflation, volatile exchange rate movements, and rate hikes, the smartphone market is expected to remain under pressure in Indonesia. Overall smartphone shipments are expected to be lower in 2022 compared to 2021.

Oppo still leads the smartphone market

Oppo managed to maintain its first position in Q3 2022. The A57 release supported the low-end segment, along with the A16 line. On the other hand, the newly released Reno8 line lifted its mid-range portfolio, as it contributed to 44.1% of Oppo’s total shipments in the third quarter of 2022 compared to 15.5% in the same quarter of 2021. Reno8 5G helped to push Oppo’s share in Indonesia’s 5G segment to 19.1% compared to 6.5% in Q3 2021.

Samsung held the second position. The launch of Galaxy Z Flod4 and Galaxy Z Flip4 almost tripled the units in its foldable portfolio. Samsung’s low-end segment share grew to 64.6% compared to 50.6% in the third quarter of 2021, with the Galaxy A13 and A03 lines as the main drivers. Samsung also pushed its 5G shipments to 24.4% of its total volumes compared to 8.7% in Q3 2021, retaining its title as the top 5G player in the country.

Vivo stayed in the third position. The release of Y35 and V25, with continued support from the T1 and V23 models, doubled Vivo’s share of the mid-range portfolio to 14.8%. The latest products of X80, X80 Pro, and V25 Pro led Vivo’s venture in the >US$400 segment. The same models also contributed to 5G shipment growth by 42.4% YoY.

Xiaomi kept in fourth place. Redmi 10A and 10C, along with the previous generation Redmi 9A and 9C, contributed to the expansion of <US$200 shipments to 82.3% compared to 63.2% in the third quarter of 2021. Xiaomi managed to grow the share of its 5G shipments to 14.9% of Xiaomi’s overall shipments, compared to 13% in Q3 2021. The 5G shipments growth is contributed by Poco F4 and Redmi Note series, along with the latest released Redmi 10 5G and Mi 12 Lite. Xiaomi remained to have the lowest-priced 5G model in the market.

Realme remained in the fifth position. The brand’s <US$200 segment kept stable with the release of its Narzo 50i Prime and C30 models, along with other C series and Narzo models. The GT Neo3 and GT2 Pro supported Realme’s >US$400 shipments, which stabilized at 2.3% of Realme’s overall shipments.

Tags: IDCOppoRealmeSamsungsmartphone market in IndonesiaVivoXiaomi

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