Increasing Consumer Interest in Flagship Smartphones in Indonesia
Recent research from NIQ reveals a significant shift in the Indonesian smartphone market between January and September 2025. Consumers are increasingly drawn to flagship devices rather than mid-range or budget options.
Sales data indicate a rise in purchases of smartphones priced above IDR 10 million (approximately $670) and in the IDR 5 million to 10 million range ($335 to $670). This contrasts with the steep decline in demand for devices under IDR 5 million (below $335).
Market Dynamics and Economic Context
NIQ Indonesia’s Director of Tech and Durables Commercial Lead, Bramantiyoko Sasmito, links this trend to economic weakening in Indonesia in early 2025. He explains that lower-income groups, who typically buy cheaper smartphones, are facing financial contractions. Meanwhile, consumers interested in premium products continue to show growth.
Statistical insights from the period confirm 67% of unit sales came from smartphones priced above IDR 10 million, while the segment priced between IDR 5 million and 10 million accounted for 10.6%. Conversely, the market for devices under IDR 5 million dropped by 82.7%.
Transaction Value Highlights Premium Segment
In terms of total transaction value, flagship smartphones dominate the market. Devices above IDR 10 million contribute 31.7% of overall sales revenue, followed by mid-range devices (IDR 5 million – 10 million) at 20.6%. This reflects a consumer preference for higher-end technology despite economic pressures.
Outlook for 2026
The NIQ report forecasts an improved market outlook for 2026 compared to 2025. Several factors support this optimism, including the launch of flagship models like the iPhone 17 in the second half of 2025. New market entrants may also attract consumers with technological innovations.
The adoption of 5G technology is expected to accelerate device upgrades and enhance user experience. Additionally, artificial intelligence (AI) capabilities are predicted to become more accessible, fostering further interest in advanced smartphones.
Key Factors Driving Flagship Demand
- Economic challenges shifting demand towards premium but perceived higher-quality devices.
- Consumer readiness to invest more in technology offering longer lifecycles and better performance.
- Entry of new brands introducing innovative products.
- Increased accessibility of 5G networks and AI functionalities supporting richer user experiences.
This evolving landscape suggests Indonesian consumers are prioritizing value and advanced features over low cost. Flagship smartphones now represent a growing share of both sales volume and market revenue. The trend is poised to continue as 5G expands and AI becomes mainstream.
Understanding these market dynamics helps stakeholders anticipate shifts in consumer preferences and adjust product strategies accordingly. NIQ’s findings provide a clear signal that premium smartphone segments will remain central to Indonesia’s mobile market growth.
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