Indonesian smartphone market rebounds with 8.8% YoY growth in Q3 2023

Indonesia's smartphone market achieved an 8.8% year-on-year (YoY) growth in the third quarter of 2023, marking the end of an eight-quarter decline. The market saw 8.9 million units sold, with a minimal quarter-over-quarter (QoQ) decrease of 0.9%, according to recent data from the International Data Corporations (IDC) Worldwide Quarterly Mobile Phone Tracker.

In spite of less than substantial growth opportunities, vendors took an aggressive approach across all price segments. This competitiveness was spurred by strategies such as retail expansions and price cuts.

Leading the growth were high-priced smartphones (above US$600), with a significant growth of more than double the prior year's sales. This growth was stimulated by new foldable releases by Samsung and the shipments of Apple's iPhone 13 and iPhone 14.

The mid-range price segment (US$200-US$600) also had a notable 16.8% YoY growth. This was brought about by leading vendors like Samsung, Apple, and OPPO as they fortified their product lineups within this category.

Mobile phones priced under US$200 saw a 2.7% YoY increase in sales after consecutive quarters of sales decline. This was esult of a stiff competition among vendors including Transsion, Vivo, Xiaomi, and realme. With vendors focusing on pricier models, the Average Selling Price (ASP) experienced a 9% YoY increase in Q3 2023, reaching US$205.

OPPO managed to regain the top market position after being previously outpaced. It accomplished this with the help of various new model releases that drove growth in multiple price segments.

Transsion, meanwhile, secured third place, dominating the under US$200 segment with its sub-brands Infinix and iTel. Xiaomi experienced a significant YoY growth after overcoming previous inventory struggles.

5G smartphone shipments rebounded in the third quarter from a previous decline, with an impressive 54% YoY growth. This trend sees 5G smartphones holding the largest market share ever in Indonesia at 19.2% of total smartphones. Despite OPPO's suite of 5G releases in the same quarter, Samsung still led the market with its broad 5G product range.

"We are starting to witness a path to recovery with this rebound in Q3 2023. Nonetheless, due to ongoing reports of slow consumption, we expect vendors to continue exercising diligence in strategising their market moves to avoid excessive inventory in their channels," outlined Vanessa Aurelia, an Associate Market Analyst at IDC Indonesia. Aurelia further predicted that the total smartphone shipments for the full year 2023 are likely to remain flat or even less than the numbers reported in 2022.

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