16 November 2022

Indonesian smartphone shipments were affected by rising costs in the third quarter of the year according to IDC, which has predicted ongoing pressure and a decline in full-year numbers.

Low-tier smartphones took the brunt of the hit, with overall shipments down 12.4% to 8.1 million units. The share of devices priced between US$100-200 dropped to 75% of the total from 81% in the third quarter, with mid-range models priced between US$200-400 stable.

Vanessa Aurelia, associate market analyst at IDC Indonesia, pointed to “significant strengthening” in shipments of models priced at more than US$400 “as demand there stayed relatively inelastic” compared with lower tiers. IDC noted consumer purchasing power and overall demand was impacted by higher inflation and volatile exchange rates.