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Indonesia's smartphone market hampered by murky macro climate
Demand for smartphones in Indonesia is projected to drop in the second half of this year, extending a decline seen in the second quarter.
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The great outdoors: A man browses Netflix on his smartphone in Temanggung, Central Java, in July 2020. (JP/R. Berto Wedhatama)
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emand for smartphones in Indonesia is projected to drop further in the second half of this year, extending a decline seen in the second quarter, as consumers pinch pennies during a time of economic uncertainty.
A recent report from global research firm Counterpoint found that smartphone shipments to Indonesia fell 11 percent year-on-year (yoy) in the second quarter of 2022.
The outlook for the second half remains tempered even as Indonesia’s economic growth surpasses that of regional peers and developed economies, some of which are facing recession.
“However, currency fluctuation will likely play a strong role in hampering smartphone demand, while the global macro-outlook implies elevated inflation risk,” Counterpoint technology market senior analyst Glen Cardoza said in the report.
He added that weakened consumer spending would likely hit sales of low- to mid-end devices hardest in the second half of this year.
Read also: Apple, Samsung, Huawei among global tech giants hit hard by fear of recession
Nonetheless, he noted there was an opportunity to boost smartphone sales as Indonesian cellular operators continued to shut down 3G networks, increasing the need for consumers to upgrade their handsets.
