Jakarta, CNBC Indonesia - Mobile phone traders are also affected by\nthe rising prices of handsets. Price adjustments have occurred since the\nend of last year due to chip shortages resulting from surging demand for\nAI.<\/p>\n
A mobile phone trader at ITC Kuningan in Jakarta admitted that his\nsales have significantly declined over the past two months. They have\neven dropped by up to 50% since the beginning of this year.<\/p>\n
\u201cIt affects a lot; my sales have been in ruins for two months,\u201d he\ntold CNBC Indonesia on Tuesday (7\/4\/2026).<\/p>\n
Eid, which usually sees an increase, has not been much different. He\nadmitted to selling fewer than 30 units this year compared to up to 40\nunits last year.<\/p>\n
Sales declines have indeed occurred in many mobile phone shops.\nAnother seller said he had informed buyers in advance about the price\nincreases happening in many places.<\/p>\n
\u201cWe just give them the knowledge; all prices are rising. Prices are\nup everywhere. Just wait; they\u2019ll rise again because some shops have had\nincreases twice,\u201d the seller explained.<\/p>\n
Meanwhile, a shop employee said many buyers still purchase phones\neven after knowing about the device price hikes.<\/p>\n
The devices experiencing increases are mostly entry-level phones like\nthe Samsung A07, which has risen by Rp100,000-Rp200,000.<\/p>\n
Similarly, some mid-range phones have also increased, such as the\nOppo A6, which has gone up by around Rp900,000.<\/p>\n
Some shop sellers also revealed that phones with 4\/64 GB memory are\nnow priced at more than Rp2 million. Previously, that configuration was\nsold for around Rp1.4 million.<\/p>\n
The rise in mobile phone prices, along with laptops, is due to chip\nshortages since the end of last year. This is because demand for chips\nin the AI industry continues to increase.<\/p>\n
IDC has also predicted such price rises at the beginning of this\nyear. Indonesia is said to be feeling the global chip crisis.<\/p>\n
The impact is evident on cheap smartphones. It also affects mid and\nhigh segments, but with some costs still absorbable before passing them\non to selling prices, ultimately keeping prices more controlled.<\/p>\n
RAM Crisis Worsens, China Starts to Give Up<\/p>\n
The impact of this RAM crisis has led several Chinese phone\nmanufacturers to revise their shipment projections at the beginning of\nthis year. Xiaomi and Oppo have reduced production by more than 20%,\nwhile Vivo has cut by nearly 15%.<\/p>\n
The parent company of Tecno, Infinix, and Itel, Transsion, estimates\na shipment decline of 70 million units.<\/p>\n
Like Chinese producers, research firm Counterpoint has also slashed\nits global mobile phone shipment projections to minus 2.1% for the year.\nThe largest revisions are for Chinese phone makers, with Honor, Oppo,\nand Vivo recording declines of 1% to less than 4%.<\/p>\n
Meanwhile, a Techwire Asia report also mentions the impact of chip\nshortages on low-end devices. Producers cannot obtain enough DRAM and\nNAND for products in that segment and have options like raising prices\nor cutting standard features in phones.<\/p>\n
The Asia-Pacific market is the most affected by the global memory\nchip shortage. Because cheap phones dominate this region.<\/p>\n
For information, low-priced phones usually take thin margins. This\nleaves very little room to handle rising chip prices.<\/p>\n
Counterpoint notes that component costs for low-end phones, ranging\nbelow US$200, have increased by 25% since early 2025. Meanwhile, for mid\nand high classes, it\u2019s 15% and 10%.<\/p>\n
Memory chip prices are also predicted to rise further in Q2-2026 by\n40%. This will add 8%-15% to production costs.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mobile-phone-sales-in-ruins-traders-fortunes-wretched-1775627521", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }