Australia’s Smartphone Shipments Continued to Decline at 9.3% YoY in 3Q23
December 11, 2023 | IDCEstimated reading time: 1 minute
According to International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker, Australia’s smartphone market declined by 9.3% year-on-year (YoY) in 3Q23, shipping 1.81 million units, marking its 4th consecutive quarter of YoY declines. The end-of-financial-year sales provided a slight uplift in July, but consumer demand remained muted due to economic instability.
The average selling price (ASP) increased by 5.1% YoY in 3Q23, reaching US$813. Smartphones priced above US$1000 sustained growth, driven by the recent releases of the Samsung Galaxy Z5 series and Apple iPhone 15 series. New models were launched in the low- to mid-price brands by OPPO and Lenovo in 3Q23 which sold well through the open channels and in the prepaid market. The position of the Top 5 vendors remained relatively unchanged, although HMD and Lenovo switched places again, similar to what happened last quarter.
Yash Gupta, Lead Analyst for Mobile Phone Research at IDC Australia said, "Economic uncertainty is making consumers more cautious with their spending, resulting in restrained demand. Ongoing increases in interest rates, coupled with recent cost-of-living pressures, are expected to further dampen consumer demand in the domestic market."
Outlook
End-of-year events, such as Black Friday and Boxing Day sales, are expected to enhance sales for vendors and channels through enticing deals and consumer offers. Nevertheless, consumer demand will stay subdued for the remainder of 2023 and the first half of 2024, given the sluggish economic activities. This will result in a single-digit YoY decline in shipment numbers for 4Q23.
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