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Demand For Smartphones ‘Strong’ As Android Regains Crown

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Demand for smartphones are still strong despite Telstra struggling to deliver growth according to IDC who claims that more than 2.16 mobiles were shipped in the last quarter 2017 compared to 1.83M in the same quarter last year, one of the big winners was Samsung.
Of the total shipments 2.06m were smartphones whilst the remaining were feature phones with Android dominating sales.

IDC said that iOS had recently overtaken Android as the most popular smartphone OS in 2016Q4 it held 54% of the market compared to 47% for Android.

“Riding on the back of multiple Android product launches, the tables have turned and Android has returned to the top by grabbing 63% market share compared to iOS’s 37% in 2017Q2” says Bilal Javed, Senior Market Analyst at IDC Australia. Windows Phone declines further and hold less than 1% market share as lack of new devices and apps on the platform continue to hinder any opportunity in both the consumer as well as commercial segment.

Even with the slowdown of iPhone 7 shipments Apple was still able to hold the top spot with 37% market share. “This slowdown was expected as consumers hold off purchase before the new flagship launch expected in the latter half of the year” adds Javed. It will be interesting to see if Apple can regain market share after the much-awaited launch and return to owning well over half of the Australian smartphone shipments.

Samsung was the success story of this quarter as its market share jumped from 23% in 2017Q1 to 34% in 2017Q2. Samsung successfully bounced back from impact of the recall of Galaxy Note 7 last year and the growth was fuelled by the launch of the highly successful Galaxy S8 and S8+. These two models made up for over 75% of total smartphones shipped from Samsung in the quarter. The success of the Galaxy S8 series and the launch of the Galaxy Note 8 recently looks to be Samsung’s market stand as it gets ready to lock horns with Apple in the second half of 2017.

The remaining market share up for grabs sees an intense battle. Alcatel regained some ground to hold 5% of the market through its exclusive device strategy for telecom operators in the prepaid space and gained traction from their price attractive devices in the open channel. OPPO continued to establish and grow themselves in Australia with 5% market share as well.

Overall Alcatel sales are up 22% at some carriers while Sony is making a comeback despite low numbers in prior quarters according to an Optus source.

The launch of two new devices, A57 and A77 following on from the success of the F1s has fuelled solid growth. OPPO continues to expand their retail partners which is expected to fuel further growth moving forward.

Huawei’s penetration continues with 4% market share on the back of the flagship P10 series launch as well as significant growth in the prepaid segment through its Y series devices available from Telecom operators. ZTE, who also manufacture Telstra branded smartphones compete in the low-price segment with both companies having a combined market share of 6%.

The market that was showing signs of saturation seems to have rebounded at least for the short term. With the re-entry of Nokia brand under HMD, Amazon’s foray into Australia and launch of more flagships in the second half of the year the market is expected to grow to over 9m handsets in 2018.

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