16 Dec 2021
Indonesia Smartphone Market Declines 12.4% YoY in 3Q21, amidst Supply Difficulties and COVID-19 Lockdown
Jakarta, December 16th, 2021 – According to the latest IDC Quarterly Mobile Phone Tracker, Indonesia’s smartphone shipment dropped 12.4% YoY, reaching only 9.2 million units in 3Q21 amidst channel disruptions and difficulties from the supply side. The second wave of COVID-19 peaked in July 2021, resulting in stricter lockdown regulations that lasted for a significant part of 3Q21. This, in turn, led to a retail shutdown that impacted the Java and Bali regions and several other hotspots, which caused offline sales to suffer.
While restrictions started to ease since September, supply shortages will continue to impact overall mobile phone production and shipments, with a tighter supply of 4G smartphones as OEMs focus on 5G smartphones. This, along with the increasing component prices, led to price increases for several low-end 4G models. “Vendors are being strategic in facing this difficult supply situation, with some vendors opting to replace or not release models that had more supply constraints,” says Vanessa Aurelia, Associate Market Analyst from IDC Indonesia. “Some vendors started to explore other ways such as revisiting their distribution strategies to keep prices under control,” Aurelia added.
More 5G models continued to be released in 3Q21, increasing the share of 5G to 7% from 6% in the previous quarter. The average selling price (ASP) of 5G smartphones dropped by 27% QoQ to US$ 418 in 3Q21, as OEMs strive to bring affordable 5G smartphones into the market.
Top 5 Company Highlights: 3Q21
OPPO managed to climb back to the top position keeping a relatively steady inventory, despite the supply shortages. It was still the leader in the low-end segment (US$ 100 < US$ 200), which accounted for the majority of its shipments.
vivo managed to climb to the second position as it was able to grow its offline sales and maintain inventory level. vivo was able to enter the ultra low-end segment as the price of Y1s dropped to below US$ 100 while also taking second place in the low-end segment with its Y series.
Xiaomi dropped to the third position after two consecutive quarters of strong growth, as it faced supply constraints and tight inventory. Despite this, Xiaomi stood strong as the leader of the mid-range segment (US$ 200 < US$ 400).
Samsung kept its place in the fourth spot while experiencing shipment decline as lockdown-induced retail shutdown led to the slowdown in offline sales. Samsung also refreshed its foldable series in 3Q21, which were very well received by the market.
realme remained at the fifth position by maintaining its shipment number despite concerns of supply shortages. It was able to keep momentum by refreshing some of the C series models with a new processor that had a relatively stable supply.
OEMs are expected to be launching new models in tandem with the year-end holiday period in 4Q21 to utilize the momentum. However, the existing supply constraints are expected to persist weighing down on the overall shipment.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
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.
Copy the following code into your site