Australian smartphone shipments see record decline

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Australian smartphone shipments see record decline

The Australian smartphone market saw a record decline in smartphone shipments in 2018.

Data from IDC revealed the country’s smartphone market declined 9 percent year-over-year to just under 8.2 million shipments in 2018, compared to 9 million shipments the previous year.

“An overall lack of innovation and improvement in smartphones in recent years is extending replacement cycles,” IDC market analyst for mobile phones John Riga said.

“This is in line with the trend seen in other developed markets, where many consumers are holding off on upgrading to the latest device.”

Economic factors also drove sales down, with lower consumer sentiment indicating less demand and minimal real wage growth limiting household disposable income.

IDC however predicted that the market will stabilise in 2019 with a slight decline of 0.8 percent year-over-year.

"With 5G devices and network infrastructure expected to be launched from 2019 in Australia, as well as the anticipated introduction of foldable phones, there may be some positive movement in the market," Riga said.

"However, given the high price point likely to be attached to these devices, they will take time to gain a significant foothold in the market. For this reason, while they may generate some consumer enthusiasm, it is unlikely they will significantly impact the struggling mobile phone market.”

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