IDC: Sales of 4G Cellphones Still Support Indonesia’s Smartphone Market in Q2 2023

News– Industry research firm International Data Corporation (IDC) revealed that the Indonesian smartphone market is still supported by sales of smartphones in the entry-level and 4G classes. This is inversely proportional to sales of 5G phones, which are actually not selling well.

IDC Indonesia analyst Vanessa Aurelia found that the 4G cellphone market share in Indonesia had increased from 82 percent in the first quarter to 86 percent in the second quarter (Q2) of 2023. In contrast to the 5G cellphone market which decreased by around 4.3 percent year-over-year. year for the first time since its presence in Indonesia in 2020.

“The market share for 5G cellphones is still small compared to 4G cellphones. Even though the prices for 5G cellphones are increasingly affordable, 4G cellphones often offer much better specifications at a similar price,” said Vanessa in her statement, Thursday (6/9/2023).

Vanessa assesses that 5G adoption in Indonesia is still relatively slow because it is experiencing many challenges both from the demand and supply side. Even now, the 5G network is still limited to certain points.

The still low adoption of 5G, according to IDC, also makes telecommunications operators cautious in investing in this technology, due to costs and profit levels, among other things. “5G connectivity is still limited to certain arenas so 5G features are not enough to attract new potential consumers,” continued Vanessa.

Apart from that, IDC also found that the Indonesian smartphone market declined again for the eighth consecutive quarter, namely 6.3 percent YoY. However, on a quarter-over-quarter (QoQ) basis, the Indonesian cellphone market grew 13.8 percent to 8.9 million units.

Also Read: IDC Says Indonesian Smartphone Market Will Decline 14.3 Percent in 2022

Samsung Dominates 4G Cellphone Sales

In fact, the decline in the Indonesian market was in single digits thanks to the growth of the entry-level segment, aka cheap cellphones. IDC also noted that premium cellphones (above US $ 600 or around Rp. 9.1 million), grew 71 percent YoY, Samsung and Apple are still the top brands in this segment.

“IDC predicts cellphone shipments in 2023 will be the lowest since 2018,” he added.

Based on shipments, Samsung is the number one brand in Indonesia with a market share of 20.8 percent and shipments of 1.9 million units in the second quarter of 2023. Under Samsung, OPPO shipped 1.6 million units with a market share of 17.6 percent.

The third position is occupied by Vivo, with a market share of 16.5 percent and shipments of 1.5 million units. Xiaomi and Transsion (Infinix, Tecno) are in fourth and fifth positions with 14.7 percent and 13.4 percent market share, respectively. Xiaomi shipped 1.3 million units of mobile phones in the second quarter of 2023, while Transsion 1.2 million units.


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