01 Mar 2021

Smartphone Market Posted a 1% Annual Growth in 2020, Showing Resilience Amid Covid-19 Pandemic, IDC Indonesia Reports

JAKARTA, March 10, 2021 – According to the International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker, smartphone shipments in Indonesia reached 11.7 million units in 4Q20, closing 2020 with a total of 36.8 million units and a 1% annual growth despite being stressed by COVID-19 for almost the entire year. The market experienced a steep decline of -18% YoY in the first half of the year as the lockdown was implemented, but was able to swiftly recover in the second half of the year by recording a 19% YoY growth.

Pent-up demand due to the supply shortage and retail shutdown in the second quarter of the year plus the increased utility of smartphones to support various stay-at-home activities led to a swift recovery throughout the second half of the year. Lower consumer spending power and the need for a decent smartphone drove the growth of the low-end (US$100<US$200) segment to reach 65% market share, up from 45% in 2019. Key Android smartphone brands competed fiercely in this price segment.

“Indonesia's smartphone market was resilient amidst the COVID-19 pandemic, which changed how people interact. The need for a smartphone soared, be it to support Work-from-Home, Home-based-Learning, streaming entertainment services, or simply communicating virtually,” says Risky Febrian, Market Analyst for client devices, IDC Indonesia.

“The implementation of International Mobile Equipment Identity (IMEI) registration regulation also continued to show a positive result, minimizing the circulation of illegal smartphones in the market. This factor is expected to play a huge part for a further recovery in 2021 and beyond, where we forecast the market to grow around 20% annually," adds Febrian.

FIGURE 1

Indonesia Top-5 Brand by 4Q20 Highlights

vivo maintained its position as the market leader throughout the year as it relied on the vast network of unorganized retail shops that were still operating during the lockdown. It focused on the low-end (US$100<US$200) segment with its Y-series line-up.

OPPO quickly resolved its inventory issues faced in the earlier part of the year and recovered in 2H20, especially as the retail market reopened after the lockdown, maintaining its dominance in the mid-range (US$200<US$400) segment as some of its A-series models such as the A53 and Reno series smartphones were quick to grab consumers through extensive online advertisements.

Xiaomi expanded its distribution network to ensure product availability in the rural areas and was positively impacted by the IMEI regulation. Xiaomi also expanded its share in the mid-range segment, driven by the Redmi Note 9 Pro series and introduction of the sub-brand POCO in 2H20.

realme maintained healthy annual growth in each quarter despite being hindered by limited supply issues in the first half of the year. It continued to rely on its low-end product offerings and aggressive digital marketing initiatives.

Samsung strengthened its position in the ultra-low-end (<US$100) and low-end (US$100<US$200) segment with its A-series, accounting for two-thirds of its shipments in 2020, while struggling to compete in the mid-range (US$200<US$400) category.



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