Australian Smartphone Sales Dropped By 1 Million In 2015, But Are Forecast To Rise

1 million less smartphones were sold in 2015, with the market "maturing" and the higher cost of premium models pinpointed as the reason. The Telsyte Australian Smartphone and Wearable Devices Market Study 2016 found 7.9 million smartphones were sold in 2015 compared with 8.9 million in 2014 -- that's an 11 per cent decline.

The future is looking up though, with a forecast 8.4 million units to be sold due to an anticipated major iPhone refresh, a stronger line up of Android-based handsets and new smart accessories that complement latest smartphones such as Virtual Reality headsets.

Image: Shutterstock

In the second half of 2015, Android lead the market by units sold with 49 per cent share, followed by iOS with 46 per cent and other platforms at 5 per cent. In the second half of 2015, the leading brands were Apple and Samsung, with Huawei also having a strong showing with its Nexus 6P offering.

Signs that the market is nearing saturation emerged in 2015 as only 860,000 new smartphone users were added, down from 1.87 million in 2014. A similar number of new users in 2016 are expected with the figure nearing the natural net population growth by 2020 (approximately 400,000 to 500,000 people per year). According to the study, there were 17.6 million Australian smartphone users at the end of 2015.

However, an estimated 3.5 million Australians are still using regular mobile phones and have yet to upgrade to a smartphone. It is expected the smartphone market will receive a boost as Telstra and Optus decommission their 2G networks in 2016 and 2017, requiring those on older handsets to finally upgrade.

The research shows around half of iPhone users have yet to upgrade to the larger form factor iPhone 6 (or later) models, despite the iPhone retaining a greater than 80 per cent repeat purchase intention amongst its users. A more affordable and possibly smaller form factor model is expected to be announced in early 2016, which fill this gap nicely.



    I used to love upgrading to the latest handset a few years ago, but now the price has gone well and truly past the $1000, I doubt it's something I'd ever do again.

    And if I'm not buying the best of the best, I really don't see the point in upgrading even as often as every other year. If it still works, why get a new one?

      But Dazzler, if you don't buy the latest GadgetDevice, you'll be a pariah and all your friends will look down on you and disown you! (or, How Marketing and Planned Obsolescence Supplanted Quality in the Consumer Goods Industry).

    We had peak tablets in 2013 and we had peak smartphones in 2014

Join the discussion!

Trending Stories Right Now