Swimming Against The Current, Mobile Phone Shipment Grows In The Maturing Australian Market

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The FINANCIAL — The mobile phone market in Australia experienced a strong first quarter despite high penetration rate.

According to International Data Corporation (IDC), 2.32 million units of mobile phones were shipped into Australia in 2015Q1. This represents a decline of 22% QoQ, which is expected when taking into account seasonality and excess channel inventory. When compared YoY, the overall mobile phone market in Australia grew by 29.2%. Much of this growth is attributed to the continued popularity of Apple iPhone 6 and iPhone 6 Plus. Momentum is also seen in the entry-level smartphones such as the Telstra Tempo and Rush, with both phones selling below AUD $100.

Mobile phone operators ran aggressive marketing campaigns to stimulate re-contract and new business. The main value-proposition driving the promotions was increased data-allowance across different price-plans. Several flagship models also became available at a cheaper monthly-plan, including the Samsung Galaxy S5 and HTC One M8. This pre-emptive move was to accommodate for the new flagship (Samsung Galaxy S6 and HTC One M9) launch in 2015Q2.

“Phablet adoption in Australia was catalysed by the introduction of the iPhone 6 Plus. Market share of phablets grew from 9% in 2014Q3 to 38% in 2014Q4. Growth of phablets continued in 2015Q1, reaching a market share of 41%. More phablet models are coming to Australia this year, including the Microsoft Lumia 540XL and LG G4. By the end of this year, one in two smartphones sold in Australia are likely to be a phablet.” Joseph Hsiao, Market Analyst at IDC Australia.

 

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