IDC reported Indonesian smartphone shipments fell for the first time during 2022, wiping out growth from the preceding three years.

The research company placed annual shipments at 35 million units, down 14.3 per cent year-on-year, due to supply chain issues in H1 and declining customer buying power later in the year.

In Q4, shipments fell 17.6 per cent to 8.5 million units.

Despite financial headwinds, IDC revealed the premium segment demonstrated better performance in 2022. Apple and Samsung led this part of the market, which booked 36.9 per cent growth.

However, the analyst company noted affordable handsets still dominated in Indonesia, with smartphones priced below $200 making-up around 74 per cent of the market.

Looking to this year, IDC Indonesia associate market analyst Vanessa Aurelia said the company expected shipments to be flat, adding “the lower-end segment is likely to be soft due to increased spending in other areas”.

“On the flip side, premium segments are expected to be more resilient as consumers aim for better specs and durability while vendors are also expanding their higher priced portfolios,” she added.