As replacements decline.
High-speed 5G capability is now important for more than one in three Australians when choosing a smartphone, according to technology firm, Telsyte. The new research also showed that the numbers increase to around 60% amongst those planning to purchase a smartphone before the end of 2020, making it critical for upgraders.
5G mobile technology is being rolled out across Australia, promising speeds up to 1Gbps and beyond and consumers are making purchasing decision based on the availability of the technology, both to future-proof and maintain resale value.
Lack of 5G support is likely to impact demand for iPhones in next 12 month, however Telsyte believes the arrival of a 5G iPhone in 2020 could re-ignite the market.
With a large selection of 5G smartphones expected in 2020, annual sales of smartphones could potentially reach the peak levels last seen in 2017 where over nine million smartphones were sold in Australia.
“All the evidence is suggesting that we are set for a super cycle in 2020 as consumers replace aging 4G handsets”, Telsyte managing director, Foad Fadaghi said.
Smartphones sales declined 6% in the FH19 compared to the same period a year ago. The average replacement cycle for smartphones is now almost three years, with iPhones having a 25% longer replacement cycle compared to Android.
Apple remained the top vendor overall and the top three Android vendors during the measured period were Samsung, Oppo and Huawei. Android sales were driven by increasing demand of mid-range smartphones and bundles, comprising a smart speaker or smartwatch.
Despite declining iPhone sales in 1H19, Apple maintained the highest repeat purchase rate greater than 90% while Samsung and Oppo both increased and are the leading Android smartphone vendors.