14 Mar 2021

Indonesia's PC Market Posted a Significant Decline in 2020 Because of Ongoing Supply Constraints, IDC Indonesia Reports

JAKARTA, March 22, 2021 — Indonesia’s traditional PC market, inclusive of desktops, notebooks, and workstations, declined by 28.3% year over year (YoY) in 2020, with a total of 3.04 million units shipped into the country, according to IDC's Quarterly Personal Computing Device Tracker, 4Q20.

The ongoing supply constraints impacted Indonesia’s traditional PC market negatively in both the consumer and commercial segments. The demand from the consumer market was strong as many households suddenly found the need for notebooks for work-from-home policies and online learning during the COVID-19 pandemic. Nevertheless, because of the significant increase in the worldwide PC demand, country stock allocation became a major challenge for PC vendors in Indonesia.

"Many PC vendors decided to prioritize high average selling price (ASP) markets for supply, focusing more on mature markets and high-end products to maximize profits. This significantly impacted PC shipments in Indonesia, which is traditionally a low-end market with low ASPs. Effectively, vendors were not able to secure all the supplies they needed, which contributed to a big decline in shipments in 2020," said Stallone Hangewa, Market Analyst, IDC Indonesia.

Desktop and notebook shipments declined by 41.8% YoY and 23.2% YoY, respectively, in 2020. "Desktop demand was badly impacted by the COVID-19 pandemic, particularly in the commercial space as companies shifted their purchases toward notebooks in order to accommodate their employees to work from home and maintain business continuity during the lockdown period," said Hangewa.

The small and medium-sized business (SMB) and enterprise segments witnessed significant drops as most companies postponed and/or cancelled their device purchases because of increased economic uncertainty. Unlike other segments, education was the only one that posted an increase YoY in 2020, with growth of 21.4% driven by projects fulfillment for remote learning. The projects were a combination of both Windows PCs and Chromebooks, marking the first significant deployment of Chrome devices in the education space in Indonesia.

Top 5 Company Highlights: 2020

ASUS managed to secure the top position despite experiencing a 30.7% YoY decline in 2020. ASUS’ consumer shipments were heavily impacted by supply constraints, yet the company managed to maintain its leadership in the gaming notebook market. In contrast to its consumer shipments, ASUS' commercial shipments performed well thanks to the Chromebook project in the education space.

Acer Group climbed to the second position after taking a 21.7% market share in 2020. The Chromebook fulfillment to the education space contributed to Acer’s impressive YoY performance in the commercial market.

Lenovo secured the third position with a 20.2% market share in 2020. Fulfillments to both the private and public sectors continued in 2020, but they were lower than in 2019 because of the ongoing supply constraints.

HP Inc. slipped to the fourth position with a 17.2% market share for the full year of 2020. Similar to other PC players, HP Inc. also faced shortages that impacted its commercial and consumer shipments. Its desktop shipments experienced a steep decline because of a shift in demand toward notebooks.

Dell Technologies was at number 5 in 2020 with a 6.8% share in PC shipments in Indonesia. Dell managed to secure enough stocks in 4Q20, which helped the vendor soften the YoY decline.

FIGURE 1

Indonesia Top 5 Traditional PC Companies, 2020 Versus 2019 Shipments

"IDC predicts that the Indonesia PC market will recover in 2021, with growth expected to reach 37.2% YoY. Demand from the private sector will be driven by remote working, and companies are expected to continue to focus on procuring notebooks in preparation for any possible disruptions in the future. In the public sector, education shipments will be driven by the deployment of Chrome devices. In the consumer market, the demand for notebooks will continue to be strong, fueled by online learning," added Hangewa.

Notes

Shipments include shipments to distribution channels or end users. OEM sales are counted under the company/brand under which they are sold.

The enterprise segment refers to companies with 500 employees and more. SMBs refer to companies with fewer than 500 employees.

Traditional PCs include desktops, notebooks, and workstations but not tablets or x86 servers. Detachable tablets and slate tablets are part of the personal computing device tracker but are not addressed in this press release.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

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