The Indonesian smartphone market saw a modest 5 percent growth year on year in 2021. But while the rise was short, the region still managed to record its highest ever handset sales ever.
According to a Counterpoint Research report, the surge in phone shipments was likely due to a pent up demand during the first half of the year. During this time, the market saw a robust performance of mid range handsets and wider adoption of 5G also encouraged customers to upgrade their devices. Furthermore, this trend continued into the second half of 2021 as the Indonesian economy began recovering, as the government relaxed restrictions and lifted lockdowns as well. This triggered the demand for handsets.
Research Analyst Tanvi Sharma stated that “Brands like OPPO brought bundled offers and campaigns like Joy-Full, which provided benefits and after sales promos. There were also strategic partnerships between major OEMs and e-commerce players, like between vivo and JD.com. Had it not been for the component shortages during the second half, the growth would have been even higher. To meet the challenge, brands focused on their mid-tier portfolios and increased the selling price in some cases to pass on the increased cost to the end consumer.”
In 2021, OPPO lead the Indonesian market, with a sizeable market share of 22 percent. Its A series of smartphones helped boost its standing in the industry and fuel its growth. The Chinese brand also held a strong emphasis of sales through both offline and online channels. Meanwhile, Vivo managed to take the close second spot with a 21 percent while Xiaomi arrived third in the market with an 18.2 percent market share.
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