Indonesia’s smartphone market declined quite significantly in the first quarter of this year due to high inflation and a short supply of low-end smartphones, according to IDC Research.
As semiconductor for low-end electronics continues to lack, there is a shortage of low-end smartphones usually priced around US$200 or less.
According to the report, Indonesia saw a 17.3% decline in smartphone shipments in 1Q22, compared to the same period last year, the on-year decline is likely to extend into the second quarter of this year despite the holiday boost from Ramadan in April, said the report.
The government is also raising VAT taxes starting in April 2022, which will effectively increase prices of consumer electronics.
According to the report, Indonesia sees a 22% on-year decline in the first quarter this year of low-end 4G smartphone shipments.
Samsung became the largest smartphone vendor in the country with a 23.3% market share in 1Q22. That percentage translated into about 2.1 million smartphone shipments in the quarter.
4G network still dominates most Southeast Asian countries. However, Ericsson predicted that 5G subscriptions will grow by more than double during 2022 as more network deployments will carry out.
By 2027, there will be an equal number of 5G subscribers as 4G subscribers at around 5.7 million in Southeast Asia and Oceania.
5G growth is expected to surge in the next few years, according to Ericsson. Cambodia, Sri Lanka, and Vietnam have commenced 5G trials. Indonesia and the Philippines have launched 5G FWA services as well.