The smartphone market in the country is projected to experience significant pressure over the next two years. IDC Indonesia has issued a warning signal that national smartphone sales volume has the potential to record a double-digit decline throughout 2026.
This condition is triggered by two crucial, intertwined factors: the limited supply of chips and the weakening purchasing power of the public. Rising device prices at the consumer level are an inevitable consequence of swelling production costs, especially for memory chip components, which serve as the main brain of modern gadgets.
Vanessa Aurelia, Associate Market Analyst, Client Devices Research, IDC Indonesia, explained that the scarcity of memory components has a systemic impact on the entire smartphone market ecosystem. Although the impact is felt across the board, the entry-level device segment or phones priced under US$200 (around Rp3.6 million) is the hardest hit group.
This affordable device category has very thin profit margins, so any increase in component costs will immediately pressure the selling price. This increasingly challenging market condition forces manufacturers to manage their strategies more tightly amidst global supply chain uncertainties and domestic economic conditions that are not yet fully stable.
