The Indonesian smartphone market recorded a 12.4% year-on-year decline in shipments to 8.1 million units in Q3, as the market constricted due to inflation and rising fuel costs.
IDC said in its report, the Indonesian market was “subdued” in the quarter “after the price increase of subsidised and non-subsidised fuel.”
The analyst firm added the increase in fuel prices impacted consumer purchasing power and overall demand for smartphones.
IDC Indonesia associate market analyst Vanessa Aurelia said rising costs have “led to more pressure” in the sub-US$100 segment, as units shrank from 81% to 75% this quarter.
Mid-range devices costing between US$200 to US$400 remained stable, and there had been “significant strengthening” in the sub-US$400 as demand “stayed relatively inelastic” compared to lower price brackets.
“Vendors are being strategic with their product releases, while also offering various discounts and cashback to spur demand,” said Aurelia.
Looking ahead, IDC forecasts the overall smartphone market in Indonesia to decline compared to 2021 due to “rocketing inflation”, volatile exchange rate movements, and rate hikes”.
Chinese smartphone vendor Oppo defended its market share lead in Q3 with 1.9 million units, taking 22.9% market share, but this was a decline from 2 million units.
Samsung recorded growth of 16.5% to rank second with 1.8 million units (21.6% market share), up from 1.5 million. Vivo came in third with 1.5 million units, followed by Xiaomi with 1.1 million and Realme with 900,000 units.