Australia’s Smartphone Shipments Continued to Decline at 9.3% YoY in 3Q23
SYDNEY, Australia – Australia’s smartphone market experienced a 9.3% year-on-year (YoY) decline in the third quarter of 2023, according to the International Data Corporation (IDC). The country shipped 1.81 million smartphone units during the period, marking the fourth consecutive quarter of YoY decline. Despite a slight uplift in July due to end-of-financial-year sales, consumer demand remained subdued due to economic instability.
The average selling price (ASP) of smartphones in Australia increased by 5.1% YoY in 3Q23, reaching US$813. The growth in ASP was driven by the release of high-priced models such as the Samsung Galaxy Z5 series and the Apple iPhone 15 series. Additionally, new models launched by OPPO and Lenovo in the low- to mid-price range performed well in the open channels and prepaid market. The positions of the top five vendors remained largely unchanged, with HMD and Lenovo swapping places once again.
Yash Gupta, Lead Analyst for Mobile Phone Research at IDC Australia, highlighted the impact of economic uncertainty on consumer spending. 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, said Gupta.
Looking ahead, industry experts anticipate end-of-year events such as Black Friday and Boxing Day sales to stimulate sales through attractive deals and consumer offers. However, given the sluggish economic activities, consumer demand is expected to remain subdued for the remainder of 2023 and the first half of 2024. As a result, smartphone shipments are projected to decline by a single-digit YoY in 4Q23.
The decline in smartphone shipments reflects the current state of the Australian market, which is grappling with economic uncertainties and cautious consumer spending. Despite the introduction of new and high-priced smartphone models, the subdued demand has significantly impacted the industry. With events like Black Friday and Boxing Day on the horizon, vendors and channels will strive to entice consumers with enticing deals to boost sales. However, until economic stability is restored, the market is likely to witness a downward trend.
As economic pressures persist, consumers are expected to remain hesitant about making significant purchases, including smartphones. It will be crucial for smartphone manufacturers and retailers to consider the pricing strategy and value proposition in order to attract buyers in a market characterized by restrained demand.
Overall, Australia’s smartphone market faces ongoing challenges as economic uncertainty continues to impact consumer confidence and spending habits. The industry must adapt and innovate to navigate these turbulent times and find ways to reinvigorate consumer interest and demand in order to reverse the current decline in smartphone shipments.
Note: *Figures have been rounded to the first decimal point.
