5G smartphone in Indonesia accounts for 21% share

5G smartphone shipment in Indonesia accounts for 21 percent of the total smartphone business compared to 79 percent share of 4G smartphones in the second quarter of 2022.
Indonesia’s 5G smartphone shipment grew 159 percent in the second quarter of 2022, Counterpoint Research said, led by Samsung, OPPO, Vivo and Xiaomi. The research report did not disclose the number of 5G-capable phones shipped in the second quarter.

Growth in the 5G smartphone market is moving away from the mid-price segment, with the sub-$350 and >$500 price bands accounting for nearly three-quarters of all shipments. Last year’s dominant middle band lost more than 50 percent of its year-over-year share in the second quarter of 2022.

Redmi and Samsung are driving the growth of low-cost 5G smartphones thanks to consumer demand for their Note 10 5G and A22 series devices.

Apple and Samsung dominate the premium segment of the 5G smartphone market with nearly 60 percent share.

The attractiveness of 5G smartphone specifications in the <$350 segment could lead to a reduction in the average price level. Given the competitive specifications of ROM, RAM and battery capacity, consumers prefer prices below $350 for a 5G smartphone.

Three, Indosat, Smartfren, Telkomsel and XL are the main mobile operators in Indonesia. The promotion of 5G smartphones by OEMs has failed to significantly convince mobile operators in Indonesia to expand their 5G networks. This is mainly due to the limited availability of 5G frequency and the absence of strong consumer use cases.

Telkomsel has acquired 5G spectrum during the recently held auction for additional frequencies such as 2.1 GHz.

Another auction for the low 700 MHz band is expected soon.

Considering that carriers have been using 4G and 5G together, OEMs need to maintain dual SIM slots for both 4G and 5G. In this way, a consumer can choose between 4G and 5G services from different operators, given limited 5G coverage.

The current 5G network was built from the existing 4G network and these frequencies are in low and medium bands. 2.3 GHz, 2.6 GHz and other high bands may be considered for future 5G use.

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