Indonesia sees rise in 5G smartphones despite low network coverage

Indonesia sees rise in 5G smartphones despite low network coverage

  • 5G smartphone shipments in Indonesia rose 159% year-on-year in the second quarter of 2022, led by Samsung, OPPO, vivo and Xiaomi.
  • Counterpoint said that 5G smartphones come with better and newer specifications to support the latest connectivity technologies, which generally makes them a better offering than a 4G smartphone in the same price bracket.

In Indonesia, only 5G technology has been introduced and adapted Limited sites over the past year, which puts the largest economy in ASEAN very low in the 5G adoption scheme within the region. Despite the government’s boasts about the use of the 5G network and its sweeping impact on the country, it is ironic that nothing has happened so far. However, consumers seem ready to commercialize the 5G network, and this can be seen by the type of smartphones being sold more in the country.

According to Counterpoint Research’s monthly Indonesia Smartphone Channel Sharing Tracker, 5G smartphone shipments in the country grew by a staggering 159% year-on-year in Q2 2022. The fifth generation smartphones come with better and newer specifications to support the latest communication technologies. this is Overall makes it a better offer than a 4G smartphone in the same price bracket,” the report notes.

Essentially, from consumers’ point of view, after determining their preferences for “usual” specs like RAM, screen, and battery, Counterpoint believes they consider 5G to keep their smartphones ready for the future. “Therefore, consumers treat 5G as an added value until 5G services are provided to them by operators. This is the factor driving the growth of 5G smartphones,” said Counterpoint Senior Research Analyst, Fryman Abdullah.

Furthermore, 5G smartphone growth is moving away from the middle price segment, with the sub-$350 and $500 price ranges accounting for nearly three-quarters of all shipments, Abdullah noted. He said that the dominant mid-range group last year lost more than 50% of its share year-on-year in the second quarter of 2022. Sales growth is led by Samsung, OPPO, vivo and Xiaomi.

Counterpoint Monthly Indonesia Channel Share Tracker

Counterpoint Monthly Indonesia Channel Share Tracker

“Growth in the lower tiers is driven by Redmi and Samsung, with continued consumer demand for their Note 10 5G and A22-series devices, both available since the first half of 2021. In the premium segment, Apple and Samsung He controls 60% of his share.”

Industrial Sector – Boost for 5G Smartphones

Consider how since the introduction of 5G services in Indonesia In 2021, It was a selective spread, operators chose to focus more on serving the industrial sector. On the other hand, 4G has a much wider consumer base, while shipments that include 5G smartphones have continued to increase.

“However, the vigorous promotion of 5G smartphones by OEMs has failed to impress Indonesians significantly Mobile operators to expand their 5G networks. Abdullah emphasized that this is mainly due to limited availability and the absence of strong consumer use cases. To solve the frequency issue, the government recently held an auction for additional frequencies, such as 2.1GHz which was won by Telkomsel.

Another auction of the low band 700MHz is expected soon. The other option is to share frequencies between mobile network operators. However, Counterpoint believes that collaboration between mobile operators and companies (B2B) to use 5G for the industrial sector could increase demand on the consumer front as well. “The advertising and marketing areas could prove to be low fruits in this trend. Companies can also take advantage of 5G for consumers to use in the Metaverse,” Abdullah noted in the research.





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