Publication date: 04 Sep 2023
Indonesia’s Smartphone Market Declined 6.3% YoY in 2Q23, IDC Reports
JAKARTA, INDONESIA, 05 September, 2023 — Indonesia’s smartphone market declined for the eighth quarter in a row in 2Q23, although seasonally it grew 13.8% quarter-over-quarter (QoQ), to 8.9 million units according to International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker.
Growth in the entry level segment helped the year-over-year (YoY) decline to narrow to a single digit as most of the key players increased their shipments in this space. As a result, 4G smartphone market share went back up to 86% from 82% in the previous quarter and 5G smartphones declined by 4.3% YoY for the first time since its appearance in 2020. Higher-priced smartphones in the >US$600 segment grew 71% YoY, as Samsung and Apple fought fiercely in the segment.
“5G phone adoption has been slow due to challenges on both the demand and supply sides. 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,” says Vanessa Aurelia, Associate Market Analyst at IDC Indonesia. “The low penetration rate of 5G smartphones caused telcos to stay careful in their 5G investments, considering factors like cost and overall rate of return,” she added.
“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,” adds Aurelia.
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