Indonesia Mobile Phone Shipments Surpassed 12 million in Q3; Dual-SIM Mobile Phones Driving the Growth, says IDC

Jakarta, 7 December, 2011 – Results from IDC's Asia/Pacific Quarterly Mobile Phone Tracker indicated that mobile phone shipments in Indonesia enjoyed significant growth in 3Q 2011. It surpassed 12 million unit shipments from 10 million unit shipments in Q2, representing a quarter-over-quarter (QoQ) growth of 27% and a year-over-year (YoY) growth of 68%.

A key growth driver is the high volume shipments of low-end mobile phones, particularly those with dual SIMs, along with the Idul Fitri holiday which saw increased consumer spending on gadgets. “In addition, continuous improvements made in the distribution channels outside Jakarta and Java Island are creating better opportunities for vendors to meet targets through sales of low-cost handsets," says Fajar Hidayat, Market Analyst for Telecommunications Research at IDC Indonesia.

Telecom operators are also riding the wave. IDC observes that lately, telcos have been engaging in price wars, offering promotional tariffs as well as SIM card bundling with data plan bonuses. The move has encouraged repeat purchases, and even resulted in consumers purchasing secondary handsets. Mobile phone vendors, on the other hand, have been providing attractive low-end phones with interesting features such as QWERTY keyboards, touch screens and analog TV to attract new users.

In 3Q, feature phones (phones without an OS) increased by 30% sequentially and represented 89% of total mobile phone shipments for Indonesia. The high growth of feature phone shipments in part reflects the popularity of dual-SIM handsets. It is also due to vendors stocking up in preparation for Idul Fitri. Smartphones, on the other hand, maintained a positive growth trend at 5% QoQ and contributed 11% of total mobile phone shipments. “Despite the inroads made by local vendors, smartphone sales in Indonesia are still led by international brands," continues Hidayat.

For feature phones, the top three vendors were Nokia, Cross and Nexian, with Nokia's lead strengthened by its entry into the dual-SIM market. For smartphones, the top three vendors were RIM, Samsung and HTC. RIM maintained its strong position in Indonesia with the launch of three new models– the 9900 Bold Touch, 9360 Curve, and 9810 Torch. Samsung introduced the Galaxy Fit and Galaxy Y, the latter notably priced below Rp. 1 Million.

With the introduction of lower-cost Android smartphones priced below Rp 1.2 million in 2012 by vendors such as Samsung, IDC is expecting the Indonesian smartphones market to grow by 68% in 2012.

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