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Indonesia’s Mobile Phone Shipments Jump 68 Percent in Q3
Jakarta Globe | December 07, 2011

Indonesians bought 12 million phones in the 3rd quarter of 2011, up from 10 million the previous quarter. (AP Photo) Indonesians bought 12 million phones in the 3rd quarter of 2011, up from 10 million the previous quarter. (AP Photo)
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Mobile phone shipments in Indonesia experienced significant growth in the third quarter of 2011 according to a report released by International Data Corporation on Wednesday.

IDC’s Asia/Pacific Quarterly Mobile report showed that Indonesian phone shipments surpassed 12 million units in the third quarter, greater than the 10 million shipments made in second quarter. Third quarter growth represented a year-over-year growth of 68 percent.

This high level of growth was attributed to the high volume of shipments of low-end mobile phones, particularly the ones with dual SIMs. Additionally, the Idul Fitri season saw an increase in spending on consumer goods.

“Continuous improvements made ​​in the distribution channels outside Jakarta and Java Island are creating better opportunities for vendors to meet targets through sales of low-cost handsets,” said Fajar Hidayat, Market Analyst for Telecommunications Research at IDC Indonesia in a news release.

Price wars between operators offering promotional tariffs and bonuses have also contributed to the growth in mobile phone purchases by consumers.

Third quarter shipments were dominated by feature phones. However, smartphones maintained a positive growth trend at 5 percent quarterly and contributed 11 percent to the total of mobile phone shipments.

IDC is expecting the Indonesian smartphone market to grow by 68 percent in 2012 due to the introduction of several lower-priced smartphones such as the Samsung Galaxy Y.

“Despite the inroads made by local vendors, smartphone sales in Indonesia are still led by international brands,” Hidayat added.

For feature phones, the top three vendors were Nokia, Cross and Nexian. For smartphones, the top three vendors were RIM, Samsung and HTC.