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Telsyte: Smartphones Sales Jump 11% in 2017, iPhone X Falls Short

Telsyte’s latest research reveals Australian smartphone sales experienced “strong growth” in 2017, jumping 11% YOY to 9.2 million units.

Despite the launch of the iPhone X, Telsyte reports “a significant number of additional [iPhone] sales were not recorded in Australia”, citing the device’s expensive price and “short time” in the calendar year.

The iPhone 8, 8 Plus, and 7 were named Apple’s most popular iPhones sold in the second half of 2017.

Despite relatively steady iPhone sales in 2H2017, Apple retained the highest repeat purchase rate of any smartphone vendor – 85% of owners decided to buy another iPhone. Samsung trailed behind with a 70% repeat purchase rate.

During 2H2017, 4.8 million smartphones were sold, up 6% from the same period in 2016.

Android smartphones remained Australia’s market leader – nabbing 55.1% – with 2017 named a “replacement year” for many Android owners.

Samsung, Oppo and Huawei were Australia’s top Android phone makers in the second half of 2017.

Telsyte claims that the average replacement cycle for smartphones is now close to three years, driven by higher handset prices.

As part of their study, 44% of smartphones users assert their primary reason for not upgrading their device is because their existing model is “still in good condition”.

For the first time, Australian smartwatch sales outperformed smart wristwatches (58% versus 42%) in 2H2017.

Apple and Fitbit retained market leadership in the local smartwatch and fitness band market.

Telsyte’s research reveals Australia’s use of contactless mobile payments continued to grow in 2017, up 8% from 2016. Increasing adoption is beginning to influence Australia’s banking decisions.

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