Weakening of the Rupiah Exchange Rate and Various Offers New Smartphones: An Opportunity or A Challenge?

Jakarta, June 24, 2024 – The weakening of the rupiah exchange rate against the US dollar in recent months, reaching a 20-year low, has raised concerns in various sectors, including the smartphone industry. On the one hand, this weakening could suppress consumer purchasing power and drive up the price of smartphone devices. On the other hand, it also further opens up competition among smartphone vendors to offer a variety of products that consumers are interested in. According to data from https://www.bi.go.id/id as of June 21, 2024, the percentage of the weakening of the rupiah exchange rate against the US dollar compared to the beginning of 2024 is quite high, around 5.67%.
Aryo Meidianto, Smartphone Market Analyst & Senior Consultant at SEQARA Communications, explained that the weakening of the rupiah could have an impact on the price of smartphones, especially for some components that still use import schemes. “Smartphone prices are likely to rise in the next few months, in line with rising import component and logistics costs. To anticipate this situation, the strategy of smartphone vendors is not expected to immediately raise the prices of existing smartphones, but can be seen through some devices that will be launched later, possibly some new devices will look slightly higher priced compared to the specifications offered.”
However, on the other hand, Aryo also sees an opportunity for several smartphone vendors to take advantage of this situation. “Smartphone vendors still have the opportunity to increase their market share by offering products that are more competitive in terms of price and features considering consumers will currently be more careful in spending money to buy a new smartphone,” he added.

A survey conducted by Reasense, the research division of SEQARA Communications, PR Agency based in Jakarta, on consumer behavior in Indonesia shows that 78.6% of respondents admitted to being worried about the current rise in smartphone prices. Meanwhile, when being asked about consideration to replace their smartphone devices, 44% of respondents stated that they were planning to buy a new device, 30% would still use the current device, and the other 26% had no plan to buy a new device.
The results of this Reasense survey can be a consideration for smartphone vendors to further strengthen their brand image through public relations and marketing divisions or agencies. The 44% respondents who intend to buy a new smartphone could be a stepping stone for a smartphone vendor to continue engaging with loyal consumers, as well as attracting potential new consumers. Strengthening brand image is necessary to do by engaging press as a source of information that increases credibility and public trust, not only Key Opinion Leaders (KOL) or influencers – which has recently been intensively done by most smartphone brands in Indonesia.
“In conclusion, in dealing with this situation, smartphone vendors need to be more creative in marketing their products. They should not only stop at launching products that seem excessive, but must have a continuous program to offer promotions and discounts that attract consumer interest. Besides, smartphone vendors must target wider market segments by utilizing various communication channels, including the media,” concluded Aryo.
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About SEQARA Communications
SEQARA Communications is an Integrated Communications Agency that offers a variety of services such as Public Relations, Digital/Social Media Marketing Communications, Event Management, and Content Strategy based in Jakarta, Indonesia. We focus on client success to achieve their communication goals that are aligned with their business goals. SEQARA Communications has been trusted by various brands, governments, and international institutions to support their communication activities.
About Reasense
Reasense is a research division of SEQARA Communications. Reasense is delivered with the aim of helping brands and institutions to understand the market, customers and competitors as the first part in developing an effective communication strategy that is sharp on the target and has a positive impact on the company’s image and business. Reasense conducts research for all industries, both B2B and B2C using quantitative and qualitative methods, according to the objective to achieve by clients.