Indonesia Used Smartphone Market Outlook to 2026

Driven by increasing smartphone prices and changing consumer buying behavior

The publication titled Indonesia Used Smartphone Market Outlook to 2026: Driven by increasing smartphone prices and changing consumer buying behaviour provides a comprehensive analysis of the used smartphone industry by analyzing historical statistics and corresponding developments in the used smartphone market. The report covers various aspects including used smartphone industry market size, , ecosystem, snapshot on online and offline players business model, business life cycle and value chain, growth trends and developments, Porter 5 Forces Analysis, Government rules and regulations, impact of COVID-19, SWOT Analysis, issues and challenges, future trends and outlook of the industry. Insights on competitive landscape of used smartphone industry and cross comparison between major players operating in the ecosystem namely, online platforms and offline players is also covered in the report on the basis of company profile, Business Model, Business USP, Activity of social media etc. The report highlights the process of quality checks and documentations carried out by each entity before selling a used smartphone. The report also focuses on the Used Smartphone Market Segmentation by distribution channel, type of marketing channels, source of lead generation, sourcing medium, sales, brand of smartphones, prices of used smartphones, age of used smartphones, across geographies, type of network, battery capacity, operating system, screen size. Indonesia Used Smartphone Industry report concludes with projections for the future of the industry including forecasted market size by 2026, and analysts’ take on the future highlighting the major opportunities.

Indonesia Used Smartphone Market Overview and Size

Indonesia’s Used Smartphone Industry is at a nascent stage. The industry had a single digit growth from 2016-2021. During COVID, the industry growth rate declined as the offline stores were shut. Offline stores sales dominate the industry with a large percentage share as compared to online platforms. Also, the fear of stepping out of home led to an emergence for online used smartphone in Indonesia. Internet penetration has been increasing in Indonesia from 2016 to 2021. People prefer buying used smartphones, especially iPhone, because of the high prices of these smartphones. People who prefer replacing their handsets frequently and are brand conscious prefer buying second hand phones as they are cheaper and affordable than the new smartphones. The increase in the number of emerging online marketplaces increases the ease of convenience of getting a used smartphone at the doorstep from a certified seller and trusted marketplace. Offline retail stores have also adopted an O2O model, which means they provide their products both offline and online. These offline players have a large presence on social media, especially on Facebook and Instagram. They post about all their products with their prices as well as other promos and discounts.

Indonesia’s Used Smartphone Market Segmentation

• By Distribution Channel (Unorganized, Organized): The contribution of the unorganized distribution channel is higher. There is no systematic and organized distribution channel that is followed.
• By Type of Marketing Channel (Offline Dealers, Online Marketplaces, Classifieds): Online marketplaces dominate this market with a large market share. Companies who have a strong presence offline, carried out their marketing through social media platforms or their own websites.
• By Source of Lead Generation (Online, Dealership Walk-ins): Dealership Walk-ins dominate the market. People prefer visiting the store, checking the used smartphones by themselves; personally, undergoing the quality checks for their satisfaction. They visit offline retail stores to check the used smartphones, enquire about the prices and its features.
• By Sourcing Medium (OEM’s, Telephone Operators and Businesses, Retail Customers): Retail customers dominate the market, followed by Telephone operators and Businesses. Online marketplaces and/or offline stores source these used smartphones from their businesses (B2B) or retail customers (C2B). OEM’s account for very small percentage of market share as they usually do not sell used smartphones; they only purchase it from retail customers as trade-ins and crash them later.
• By Type of Sales (B2C, C2C): Majority of the sales happen through offline dealers or online marketplaces through a B2C business model. C2C sales of used smartphones contribute a small percentage of the market share. Customers directly selling it to new customers is rare. It mainly happens in the unorganized used smartphone marketplace or through classified platforms.
• By Brand of Smartphones (Apple, Samsung, Oppo, Xiaomi, Others): Majority of the market share is captured by Apple. The used smartphone population prefer an iPhone as these phones have a good brand recognition and provides a user-friendly experience to its customers. Buying a new iPhone could be expensive for a large proportion of the population, hence they prefer second-hand handsets of these brands.
• By Age of Smartphones (0-12 Months, 12-24 Months, 24-36 Months, 36+ months): Majority of the used smartphone population prefer to buy a second-hand phone that is only 1-2-year-old. Buying a less used smartphone. Buying a smartphone at an early life enables a second-hand user to get the maximum benefits from it. The wear and tear would be less, battery life would be good and he/she would be able to use the smartphone for maximum time until it breaks down.
• By Price of Smartphones (Rp 6Mn): Buying an upper end or premium smartphones could be expensive for a large proportion of the population, hence they prefer second-hand handsets of these brands. Majority of the used smartphone population prefer buying smartphones worth more than Rp 6Mn.
• By Purchases Across Geographies (Java, Jakarta, Sumatra, Others): The entire Java region contributes the highest the market share of used smartphones in Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta contributes second highest percentage of the market share.
• By Type of Network (2G, 3G, 4G): Majority of the used smartphones in Indonesia have 4G and 3G network. 2G network is near to being obsolete. The new generation smartphones do not have compatibility with 2G networks.
• By Battery Capacity (< 3000 mAh, 3000-5000 mAh, >5000 mAh): Majority of smartphones in Indonesia have a battery capacity of 3000-5000 mAh. Newly launched smartphones such as Samsung Galaxy M-12, Oppo A54, Samsung Galaxy M51, Redmi Note 10 etc. have a battery life of more than 5000 mAh.
• By Operating System (iOS, Android, Others): Majority of the used smartphone population prefer buying an iOS operating system compared to Android.
• By Screen Size (< 4.5-inch, 4.5-5.5 inch, >5.5 inch): An ideal size of used smartphone preferred in Indonesia is that of an iPhone 7, which is 4.7 inch tall. Majority of the population prefer smartphone screen size to be between 4.5-5.5 inch.

Competitive Landscape in Indonesia’s Used Smartphone Industry

Indonesia’s Used Smartphone Industry is highly fragmented with presence of large number of offline players. Online Used Smartphone Industry is consolidated with a few online platforms. These online platforms either adopt inventory holding model or consignment-based model. These players compete amongst each other on the basis of business model, value added services and brand value. The offline players have a large presence on social media, especially on Facebook and Instagram. They post about all their products with their prices as well as other promos and discounts. The report provides a cross comparison of top players in the online platforms as well as top offline players.

Indonesia’s Used Smartphone Industry Future Outlook and Projections

The market size is expected to grow at a five-year CAGR of ~9% by 2026. Post COVID, an increase in the number of transactions through online platforms have been witnessed. The ease of convenience of getting a used smartphone at the doorstep from a certified seller and trusted marketplace, has resulted an increase in the share of online platforms in the market size of used smartphones industry in Indonesia.

Key Segments Covered in Indonesia Used Smartphone Market

By Type of Distribution Channel

• Unorganized
• Organized

By Type of Marketing Channel

• Online Marketplace
• Offline Dealers
• Classifieds

By Source of Lead Generation

• Online
• Dealership Walk-ins

By Sourcing Medium

• OEM’s
• Telephone Operators and Businesses

By Type of Sales

• B2C
• C2C

By Brand of Smartphones

• Apple
• Samsung
• Xiaomi
• Oppo
• Others

By Age of Smartphones

• 0-12 Months
• 12-24 months
• 24-36 Months
• 36+ Months

By Price of Smartphones

• < Rp 1Mn
• Rp 1Mn-3Mn
• Rp 3Mn-6Mn
• >Rp 6Mn

By Purchases Across Geographies

• Java
• Jakatra
• Sumatra
• Others

By Type of Network

• 2G
• 3G
• 4G

By Battery Capacity

• < 3000 mAh
• 3000-5000 mAh
• >5000 mAh

By Operating System

• iOS
• Android
• Others

By Screen Size

• 4.5-5.5 inch
• < 4.5 inch
• >5.5 inch

Time Period Captured in the Report:

• Historical Period: 2016-2021
• Forecast Period: 2022F-2026F

Used Smartphone Industry Players

Online Platforms

• Laku6
• Jagofon.com
• Shopee
• Tokopedia
• Bukalapak
• Olx
• Carousell

Offline Players

• Erafone
• Sentra Ponsel
• DigiMap
• Renan Store
• Ekacelluler

Key Topics Covered in the Report

• Ecosystem of Used Smartphones Industry
• Business Lifecycle and Value Chain Analysis of Used Smartphones Industry
• Business Models of Major Entities in the Used Smartphones Industry
• Ratio of Used and New Smartphones in Indonesia
• Customer Preferences and Buying Decision Behavior in Used Smartphone Industry
• Market Size of New Smartphones Industry by Transaction Value and Sales Volume
• Introduction on Indonesia Used Smartphones Market
• Market Size of Used Smartphones Industry by Transaction Value and Sales Volume
• Market Segmentation of Used Smartphone Industry by distribution channel, type of marketing channels, source of lead generation, sourcing medium, sales, brand of smartphones, prices of used smartphones, age of used smartphones, across geographies, type of network, battery capacity, operating system, screen size
• Process of Quality Checks and Documentation Requirements Undertaken by Used Smartphone Entities in Indonesia
• Competitive Scenario of the Online Used Smartphone Industry
• Issues and Challenges in Online Used Smartphone Market
• Trends and Developments in the Used Smartphone Industry
• SWOT Analysis of the Used Smartphone Industry
• Porter’s Five Forces analysis of the Used Smartphone Industry
• Growth Drivers of Used Smartphone Industry
• Challenges and Restraints in the Used Smartphone Industry
• Government Rules and Regulations in the Used Smartphone Industry
• Impact of Covid-19 and Government Regulations on Used Smartphone Industry
• Future Market Size of Used Smartphones Industry by Transaction Value and Sales Volume
• Future Market Size of Online Used Smartphones Industry by Transaction Value and Sales Volume
• Future Market Segmentation of Used Smartphone Industry by distribution channel, type of marketing channels, source of lead generation, sourcing medium, sales, brand of smartphones, prices of used smartphones, age of used smartphones, across geographies, type of network, battery capacity, operating system, screen size
• Industry Speaks
• Analyst Recommendations

 

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