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IDC Report: Indonesia’s smartphone market declined 10% in Q2 2022

Sinta by Sinta
April 18, 2023
in News
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smartphone market

Illustration of smartphone users with various brands. Photo by Camilo Jimenez on Unsplash

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Heaptalk, Jakarta — Indonesia’s smartphone market experienced a 10% decline in the second quarter of 2022 year-on-year (2Q22 YoY) with shipments of 9.5 million units according to International Data Corporation’s (IDC) report entitled Worldwide Quarterly Mobile Phone Tracker. The downturn indicates a subdued market regardless of a 6.9% quarter-on-quarter (QoQ) growth.

The findings show the first half of 2022 (1H22) closed 13.7% lower, compared to 1H21, but 3.7% higher than 1H19. Both vendors and consumers geared up for the seasonal Ramadhan period but faced a slowing consumer demand.

According to Vanessa Aurelia, Associate Market Analyst at IDC Indonesia, the decline in the market is contributed by a shift in people’s spending priorities. “In 2Q22, the government lifted the COVID-19 restrictions which allowed people to go back to their hometowns for the first time in two years. As travel expenses increased, people spent less on electronics or gadgets compared to last year. Consumer spending also shifted to other areas such as food and transportation as people went back to normal activities. The increasing price of goods also added pressure to disposable income, forcing people to prioritize spending on primary needs,” said Vanessa.

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Further, the smartphone market is expected to stay subdued in the second half of 2022, as macroeconomic factors ranging from inflation, exchange rate movements, rate hikes, and increasing fuel prices continue to erode consumer spending. With that, IDC expects the overall smartphone shipment to decline in 2022.

Oppo leads the smartphone market

The report also reveals the top 5 smartphone companies based on shipments, market, and YoY growth. Oppo climbed back to first place in Q2 of 2022. The company continues to expand its mid-range portfolio (US$200—400), with this segment comprising 46.9% of Oppo’s total shipments compared to 18.1% in 2Q21. The mid-range segment was mainly supported by Oppo’s A96 and Reno7 devices. Oppo’s 5G share increased significantly with the Reno7.

Samsung fell to second place in Q2 2022. Samsung increased shipments in its mid-range portfolio with the release of the new A and M models, as the segment’s contribution to Samsung’s overall shipments doubled QoQ to 23.2%. Several new A and M series devices were offered in 5G variants, which helped Samsung retain the lead in the 5G segment.

Vivo stayed in third place in Q2 2022 with a strong position in the less than US$200 segment, supported by the strong performance of the Y15s and Y21 models. On top of that, Vivo also released the Y01 to fill in the ultra-low-end segment equivalent to less than US$100, replacing the Y1s. Vivo 5G shipment increased significantly, due to the newly released T1 5G and T1 Pro 5G.

Xiaomi held in fourth place with a firm stand in the less than US$200 segment with the freshly released Redmi 10A and 10C. The flagship products namely Xiaomi 12 and 12 Pro strengthened Xiaomi’s position in the more than US$600 segment since the Company does not face supply restraints in the higher price range as previously. However, Xiaomi’s rank in the 5G segment dropped to fourth as Xiaomi focused on refreshing its low-end 4G models (US$100—US$200) in the quarter.

Realme remained in the fifth position in Q2 2022. The lately released C35 and C31 supported the less than US$200 segment, along with the older C models. Its mid-range segment showed significant growth⁠, thanks to the realme 9, Narzo 50, and GT Neo 3T. The new GT Neo 3 also pushed Realme’s mid to high-end portfolio (US$400—US$600). Meanwhile, Realme 5G share grew significantly with several devices spanning GT Neo3, GT Neo3T, and Narzo 50 5G.

Tags: IDCOppoRealmeSamsungsmartphone marketVivoXiaomi

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