Warc Blog

Samsung diversifies in Indonesia

15 July 2013
JAKARTA: Samsung is to launch a new range of tablets and smartphones in Indonesia to take into account the nation's recent cost of living increases, which analysts warn have weakened consumer demand.

The Korean electronics firm indicated that its new product range would seek to cater for different levels of affluence to counter any potential reduction in demand, the Jakarta Post reported.

"We will keep an eye on emerging market trends, but we will move cautiously," said Andreas Rompis, vice president for IT and mobile devices for Samsung Indonesia.

The move comes against a backdrop of rising smartphone use in Indonesia, with a 58.7% year-on-year rise in sales volumes in the first quarter. The tablet market rose by 119.9% during the same period.

Samsung Indonesia launched the Galaxy Mega 5.8 and Galaxy Mega 6.3 on Thursday, with prices ranging from Rp4.5m toRp5.5m.

It also released three new tablets, in the Galaxy Tab 3 series, and Rompis said that he expected the new range of screen sizes to establish a new trend in the Android smartphone market.

"This is because we are the market leaders, and hence, competitors will take their cues from us," he said.

Consumers are facing rising cost pressures, with Kadence Indonesia, the market research agency, releasing a study this week showing that the removal of fuel subsidies has pushed up diesel prices by 22% and petrol by 44%.

Around half of the people surveyed by Kadence said they would reduce spending on clothing and accessories as a result, while 57% said they would eat out less, which could lead to reduced business for retailers and places of entertainment.

But the Kadence survey also found that people would maintain their spending on such necessities as mobile phone top-ups, as well as food and personal care products.


Data sourced from Jakarta Post; additional content by Warc staff

 
Envelope
EMAIL UPDATES

Sign up to Warc News – free daily bulletins on brand and market strategy, digital media and innovation



Trial


 

News content feedPrint