Australian smartphone sales continued to grow with four million handsets sold in the first half of 2021, up 4% from the 3.8 million sold a year ago as 5G begins to dominate, according to new research from emerging technology analyst firm, Telsyte.

The Telsyte Australian Smartphone & Wearable Devices Market Study 2021-2025 found sales were up for both major platforms; however, Apple continued to gain market share over Android.

More than one million 5G iPhone 12 models were sold in the first half, adding to the 5G userbase which now stands at over 3.5 million 5G handsets in use.

The top three smartphone vendors for the half were Apple, Samsung and Oppo, with increased popularity for Google’s Pixel, Motorola, realme and Vivo models.

However, Telsyte expects smartphone sales in the second half of 2021 to face head winds due to global chip shortages, and a slowdown in consumer spending.

“Demand for technology products including smartphones, has been above trend since the start of the pandemic and is likely to slow,” Telsyte managing director Foad Fadaghi said.

Telsyte research indicates the cost of smartphones continues to increase with the average price now reaching $780, up 12% YoY, largely attributed to demand for higher priced iPhone 12s.

Telsyte’s recent consumer survey found almost 1 in 6 (17%) consumers looking to purchase a smartphone in 2021 were interested in a foldable screen, with lower prices, improved durability and better application optimisation likely to help drive adoption.