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Festive Season Restricts Decline in Indonesia Smartphone Shipments to 8.1% YoY in Q1 2023

  • The ≤$200 price band grew 2.0% YoY in Q1 2023. Samsung and Infinix’s entry-level smartphones saw double-digit growth YoY.
  • 10.2% of Q1 shipments comprised newly launched models. Most of them were shipped in March 2023, facing the Ramadan shopping season.
  • 5G smartphones took a 17.2% share in Q1 2023. 
  • In the high-end and premium (≥$400) segments, Apple led with 17.7% YoY growth in Q1 2023, followed by OPPO, Samsung and Asus.

Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – May 19, 2023

Indonesia’s smartphone shipments declined 8.1% YoY in Q1 2023 after the shopping season of Q4 2022, according to Counterpoint’s Monthly Indonesia Smartphone Tracker. Thanks to Ramadan festivities, a further drop in quarterly shipments was limited by the increased shipments in March. The decline was driven by mid-range to premium smartphones, which decreased 25.7% YoY. On the other hand, the entry-level segment grew 2% YoY in Q1 2023.

Smartphone OEMs launched more new models in Q1 2023, especially near or during Ramadan festivities in March. New models accounted for 10.2% of Q1 2023 shipments, a growth of 4.9% YoY. Commenting on the increase in shipments during Ramadan, Senior Analyst Febriman Abdillah said, “Indonesians use the Ramadan shopping season to upgrade goods or buy gifts. The smartphone is among the items they are most likely to purchase during Ramadan. Since the smartphone’s role has expanded from just being used for talking to someone to covering other daily activities like shopping, working, studying, transportation and financing, the consumer attitude toward buying smartphones has shifted to looking for reliable but pocket-friendly devices. That is why facing Ramadan in March 2023, smartphone OEMs added various new models across price bands, where 36.8% were new entry-level smartphones. Many of the new entry-level models are equipped with improved basic specifications, such as 6-8GB RAM, 128GB storage and better chipset, camera and display. These improved specifications could attract consumers to upgrade their old smartphones. Various promotions during Ramadan also tempted consumers to buy smartphones. We can expect the same situation to continue in April during Eid holidays.”

Indonesia Smartphone Shipments Market Share, Q1 2022 vs Q1 2023*

Source: Counterpoint Monthly Indonesia Tracker, 2023

                                                                        *Chart data updated on May 24.

Samsung and Infinix contributed more to the growth of entry-level smartphones. Samsung strengthened its footprint in this segment and grew 18.7% YoY in Q1 2023, mostly supported by the Galaxy A04 series. Infinix had impressive growth at 44.6% YoY. Infinix’s main attractions included bigger RAM/storage than competitors, such as in the Infinix Hot 12, Hot 20 and Note 12 series. New entry-level models with 4-6GB/128GB variants were also introduced by Samsung, realme, Redmi and TECNO in this quarter, with more shipments being observed in March.

NFC feature was also available in more entry-level smartphones. As a result, entry-level smartphones with NFC grew 11.1% YoY in Q1 2023. Newly launched TECNO Spark 10, realme C55, Redmi 12C, Redmi Note 12 and Samsung Galaxy A14 added to the tally of entry-level smartphones with NFC. NFC is important for financial transactions, in addition to reading QR codes that have been popular since last year.

Ramadan festivities also helped prevent further decline for mid-range smartphones ($200-$399). The increase in mid-range shipments was also driven by new models, which accounted for 23.8% of mid-range shipments in Q1 2023. New mid-range models launched in Q1 2023 came from vivo, Samsung, Redmi, OPPO, realme and Infinix.

In the high-end and premium (≥$400) segments, Apple led with 17.7% YoY growth in Q1 2023, followed by OPPO, Samsung and Asus. Apple initiated fresh moves in Q1 2023 to increase iPhone shipments. Price reductions were a bonus for a consumer seeking a new iPhone. Trade-in schemes and instalment offers from retailers also attracted consumers. And the new partnership with Blibli to run Apple’s authorized online store added to the visibility of the iPhone in the market.

As Indonesians started to do offline activities more often than during COVID-19 restrictions, offline smartphone stores were also impacted. The stores saw an increase in visitors in Q1 2023 compared to last year, except during shopping seasons, like in December. However, the online channel played a good role in introducing new products with its pre-order schemes.

Indonesians still preferred smartphones that were affordable or had a price promotion in this time of economic recovery. Bundled plans for new products and price promotions by smartphone OEMs and retailers during the festivities in Q1 2023, like Chinese New Year and Ramadan, were more appreciated by consumers.

5G smartphones took a 17.2% share in Q1 2023. They continued to increase their presence in the entry-level segment, growing 3.6% YoY in Q1 2023. 5G entry-level smartphone shipments accounted for 1.3% of entry-level shipments in Q1 2023. 5G mid-range smartphones also grew 8% YoY in Q1 2023, accounting for 34.2% of mid-range shipments.

Outlook

Ramadan and Eid celebrations are a good shopping season for Indonesians when smartphone OEMs also launch special marketing initiatives to attract consumers. This period is also good for launching new products and bundled offers because employees get payroll incentives or the so-called 13th-month salary.

With smartphones being used intensively for digital activities, more consumers are now looking for a reliable affordable smartphone that can deliver a smooth experience during digital activities. This means good connectivity, battery, storage, camera, display and design/dimensions should be available at a reasonable price. On the other hand, new innovations and technologies should be able to bring differentiation among smartphone price segments.

Entry-level smartphones have the potential for better growth considering better in-demand specs like RAM, storage and battery capacity in more models in this segment as well as Indonesians’ need for reliable affordable smartphones.

Going forward, offline smartphone channels may grow but slowly depending on the progress of domestic macroeconomic recovery. Besides, consumers still want to try the product, especially for the mid-range and above segment. To some extent, advocacy by shopkeepers is also still needed for consumers’ assurance even though they have their own model or brand preferences.

OEM rankings have changed from our initial May 19 publication on updated shipment data.

This research note is based on preliminary data and subject to change. Feel free to contact us at press@counterpointresearch.com for any questions regarding this note or other 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.

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