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Mobile Market Grew 15.4% In Last Quarter Due To iPhone X

The Australian mobile phone grew in the last quarter of 2017 15.4% due in part to the launch of new Apple iPhones which saw Android devices fall from the top spot, some of the big losers were Oppo and Google.

More than 3.36m devices were shipped in 2017Q4, a 15.7% YoY growth according to IDC who claim that Samsung sales slumped 15.4%  in Q4 2017.

According to Samsung executives at a gala event at the Sydney Opera House, the Company has got record orders from retailers and carriers for their new Galaxy S9.

According to IDC’s Mobile Phone Tracker research, 92% of handsets were smartphones whilst the remaining were feature phones in 2017Q4. Growth came primarily from Apple’s newly released iPhone X, as the device hit Australian stores.
After leading smartphone shipments in Q2 and Q3, Android conceded the lead to Apple’s iOS in Q4. “Riding on the back of the very successful iPhone X launch, the tables have turned, and iOS has not only returned to the top but stretched its lead to grab 56.2% share compared to 43.8% for Android,” says Bilal Javed, Senior Market Analyst at IDC Australia.
After the lower demand of iPhone 8/8 Plus compared to its predecessors, Apple extended their lead at the top in 2017Q4 where they grabbed 56.2% of the smartphone market. “This rise was expected as consumers held off purchase in anticipation of iPhone X,” adds Bilal.

Though grabbing the phone OS leadership position, the challenge for Apple will be to maintain their stronghold on the smartphone market as hype from iPhone X slows down and Android vendors launch newer devices in the first half of 2018.

Samsung was able to hold second spot even after their share dropped to 15.4% in 2017Q4 from 24.6% in 2017Q3. Samsung’s shipments were fuelled by the Galaxy S8/S8+ and Note 8 which accounted for over 55% of all Samsung smartphones in the quarter. Samsung, benefitting from a diversified portfolio, saw
growth of the J series and A series smartphones as it competes with other Android vendors in the midrange price segment.

For the rest beyond Apple and Samsung, the remaining market share is subject to intense battles. Telstra branded smartphones (primarily manufactured by ZTE), dominate the low-priced prepaid space with 5.4% of the market. TCL owned Alcatel based on its partnership with Vodafone for the U series and A series held
4% of the smartphone market in 2017Q4. ZTE rounded off the top 5 with 3.5% of the market.

OPPO, Google and Huawei along with Optus branded smartphones (primarily manufactured by Alcatel) follow very closely behind.

The market that showed signs of saturation in 2016 seems to have rebounded at least for the short term. “On the back of new Android product launches witnessed at MWC last week along with the hype around 5G plus advancements in AI mean that the smartphone market will remain highly competitive, and vendors
will need to continue to innovate or risk falling behind,” adds Bilal.

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