New Android devices boost Australia smartphone market in Q2

New Android mobile phone launches spurred growth in Australia, leading to year-on-year growth of 18.4 percent to 2.16 million units, exceeding expectations in Q2, according to IDC.

Smartphones accounted for nearly all of the shipped phones — totalling 2.06 million.

Android returned to being the most popular smartphone OS in Australia. Recently, iOS had overtaken Android as the most popular smartphone OS in Q4 2016 as it held over 54 percent of the market compared to 47 percent for Android.

“Riding on the back of multiple Android product launches, the tables have turned and Android has returned to the top by grabbing 63 percent market share compared to iOS’s 37 percent in Q2,” said Bilal Javed, Senior Market Analyst of IDC Australia.

Windows Phone declined further and held less than one percent market share as lack of new devices and apps on the platform continue to hinder any opportunity in both the consumer as well as commercial segment.

Even with the slowdown of iPhone 7 shipment, Apple was still able to hold the top spot. Samsung was the success story of this quarter as its market share jumped from 23 percent in Q1 to 34 percent in Q2. Samsung successfully bounced back from impact of the recall of Galaxy Note 7 last year and the growth was fuelled by the launch of the highly successful Galaxy S8 and S8+. These two models made up for more than 75 percent of total smartphones shipped from Samsung in the quarter. The success of the Galaxy S8 series and the launch of the Galaxy Note 8 recently looks to be Samsung’s market stand as it gets ready to lock horns with Apple in the second half of 2017.

The remaining market share up for grabs sees an intense battle. Alcatel regained some ground to hold five percent of the market through its exclusive device strategy for telecom operators in the prepaid space and gained traction from their price attractive devices in the open channel. OPPO continued to establish and grow themselves in Australia with five percent market share as well. The launch of two new devices, A57 and A77 following on from the success of the F1s has fuelled solid growth. OPPO continues to expand their retail partners which is expected to fuel further growth moving forward. Huawei’s penetration continues with four percent market share on the back of the flagship P10 series launch as well as significant growth in the prepaid segment through its Y series devices available from Telecom operators. ZTE, who also manufacture Telstra branded smartphones compete in the low-price segment with both companies having a combined market share of six percent.

The market that was showing signs of saturation seems to have rebounded at least for the short term. With the re-entry of Nokia brand under HMD, Amazon’s foray into Australia and launch of more flagships in the second half of the year, the market is expected to grow to over nine million handsets in 2018.

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