• The ≥$600 price band grew 21.2% YoY. Apple and Samsung took 68.1% combined share in the band.
• Samsung was dominant in the high-end segment ($400-$599) in 2022.
• Indonesia’s 2022 smartphone shipments fell 12.2% YoY. The <$200 price band contributed most to the decline.
• The $200-$399 price band saw the highest growth of 5G smartphones at 76.3% YoY.

Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul - February 24,2023

Indonesia’s smartphone shipments declined 12.2% YoY in 2022 on a 23.8% decline in the entry-level segment (<$200 price band), according to Counterpoint’s Monthly Indonesia Smartphone Channel Share Tracker. On the other hand, mid-range to premium smartphones experienced high growth in 2022. The premium segment (≥$600 price band) shipments grew 21.2% YoY, higher than the growth of the mid-range (18.8%) and high-end (18.2%) segments. Further, 54.5% of the premium smartphone shipments were that of newly launched models, a growth of 45.8% YoY in such shipments.

Indonesia Smartphone Shipments YoY Growth by Price Band, 2022

Source: Counterpoint Monthly Indonesia Channel Share Tracker, 2022

Entry-level smartphone shipments declined due to lower consumer demand against the backdrop of macroeconomic headwinds. At the same time, the consumer’s need to upgrade to higher categories could have also contributed to the decline in the entry-level segment.

The demand for an upgrade to a more reliable smartphone shot up during the COVID-19 restrictions when offices and schools were attended online. This led to an increase in the shipments of mid-range and above smartphones in Indonesia. Though the pandemic has almost ended, the trend persists. Mobile gaming is another segment that is growing and pushing the demand for smartphones from the >$200 price band.

OEMs too have been bringing various promotions and bundled offers during shopping seasons like Id al-Fitr, Harbolnas, 11.11, 12.12, holidays and year-end.

In the premium segment (≥$600), Samsung and Apple grabbed a 68.1% combined share. Also, thanks to some newly launched models, POCO, Asus, realme, Xiaomi and vivo saw a bigger presence in this category in 2022.

Apple’s iPhone 14 series was one of the most anticipated smartphone series in the country in 2022. Erajaya group and Blibli stores offered trade-ins and installment offers to attract consumers. The high demand for the iPhone 14 Pro and Pro Max 512GB and 1TB caused a temporary shortage of these models at the pre-order stage.

In the high-end segment ($400-$599), Samsung and OPPO were the top two OEMs. OPPO was supported by the Reno 7 5G and Reno 8 5G series. The 5G capability proved to be a good addition to OPPO's strong marketing and constant promotion of camera capabilities and differentiation. Samsung was largely supported by the Galaxy A53 5G series. The launch of the Galaxy A53 5G following the Galaxy S22 launch could have presented a cheaper alternative to the S22 series for some.

Commenting on the emergence of competition in high-end to premium smartphones, Senior Analyst Febriman Abdillah said, “The ≥$400 price segment is expected to continue to grow given newer technology trends and consumers’ need to own a more reliable device with a friendlier user interface to carry out increased digital activities, like finance-related transactions. Mobile gaming has grown a lot in the last year as well. In this case, the features that consumers focus on include a long-lasting battery with fast charging, storage, camera, connectivity modes such as 4G and 5G, hotspot, Bluetooth, NFC and Wi-Fi. As competition increases, pull factors can help brands stay in the market. After-sales service and brand image can be these factors as they provide a sense of security and relevance to the consumer.”

Improved connectivity is a necessity as network technology advances. While 5G technology focuses on the industrial sector, consumers also see 5G as a technology trend that will reach them sooner or later. Push from retailers and smartphone OEMs has also helped in shaping consumer perception of future 5G needs. Therefore, 5G smartphones are expected to grow faster after the necessary infrastructure is in place. In 2022, Indonesia’s 5G smartphone shipments grew 62.2% YoY. 5G smartphones in the $200-$399 price band grew higher than other price bands at 76.3%.

Outlook

In 2023, Indonesia has the potential to show more resilience compared to other countries in the SEA region. Its population and current growth trajectory will ensure a quick revival of the smartphone market. Q2 2023 onwards, there should be signs of better growth in smartphone sales, if other economic factors do not get worse.

Seeing the progress of digital transformation in this country, more demand for reliable smartphones can be expected. Abdillah said, “As the country is continuing its digital transformation, smartphones are being increasingly used as a point of connection among consumers and businesses. One reason could be the widespread use of applications as entry points for activities in the digital world. This can lead to smartphone upgrades or multi-device use.”

Feel free to contact us at [email protected] for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Febriman Abdillah

[email protected]