Samsung has emerged as the leader in Indonesian smartphone market beating rival Oppo in 2023.
Indonesia’s smartphone market has experienced a 1.2 percent Year-on-Year (YoY) decline in 2023, marking a second consecutive annual drop. The smartphone market in Indonesia recorded a total of 34.6 million units sold during the year.
Leaders in the Indonesian smartphone market are Samsung (6.9 million), Oppo (6.6 million), Vivo (5.6 million), Xiaomi (5.1 million), and Transsion (4.5 million) during the year 2023, IDC said.
The IDC report attributes this decline to sustained weak demand, particularly notable in the first half of 2023, despite reduced supply side pressure. However, in the fourth quarter of 2023, the market witnessed a 6.1 percent YoY growth and a 1.3 percent quarter-on-quarter (QoQ) increase, reaching a total of 9 million units.
Smartphone vendors strategically capitalized on year-end festivities, refreshing lower-end models to stimulate volume sales, while others introduced flagship devices to bolster value.
A notable trend observed in the Indonesian smartphone market in 2023 was the growth of the higher-priced segment, defined as smartphones priced over US$600, which experienced a substantial 78 percent YoY growth. This segment was predominantly dominated by global giants Apple and Samsung.
Conversely, the mid-range segment (US$200 to US$600) witnessed a decline of 14.9 percent, although still led by OPPO. The lower-end segment (<US$200) remained relatively stable, with a marginal decline of 0.3 percent.
The Average Selling Price (ASP) of smartphones in Indonesia surged by 8.3 percent, reaching US$204 in 2023. This increase was primarily attributed to the recovery of Transsion and the sustained leadership of vivo in the overall market segment.
5G smartphone segment in Indonesia saw a growth of 31.5 percent in 2023, capturing a 17.1 percent market share, predominantly led by Samsung. However, despite the promising growth, the limited availability of 5G networks across Indonesia due to infrastructure constraints and high operational costs remains a significant barrier to widespread adoption.
Looking ahead, Vanessa Aurelia, Associate Market Analyst at IDC Indonesia, remains cautiously optimistic about the Indonesian smartphone market in 2024. “After rebounding in the second half of 2023, the market is expected to continue its growth trajectory, albeit in low-single digits.”
Vanessa Aurelia noted visible changes in consumer behavior, such as longer replacement cycles and an increased preference for higher-priced smartphones, which are expected to shape the market landscape in the coming year.
