For the first time, less than half of all smartphones in Australia were acquired via mobile services contracts in 2013, according to new research released today by emerging technology analyst firm Telsyte.
The Telsyte Australian Smartphone Market Study has been tracking the use of mobile handsets and smartphones in Australia for the past seven years. The 2014 report indicates outright purchase of smartphones by consumers has been growing in popularity as the price of devices and carrier subsidies have both been falling.
Telsyte research found that only 43 per cent of Australians 16 years and older had acquired their smartphone via mobile service contract compared to 57 per cent in 2012. Around 30 per cent of those that acquired a smartphone chose to buy it outright in 2013, with the remainder receiving their smartphone as a gift, as a company phone or as a “hand me down”.
“The unbundling of handset and mobile service contracts has been growing in popularity as consumers seek new handsets more frequently than the typical 24 month contract,” Telsyte Managing Director Foad Fadaghi says.
Telsyte research indicates despite reductions in carrier handset subsidies, free handsets on mobile contracts continue to appeal to consumers and have helped Android improve its market share. Telsyte research found that of those originally on a mobile services contract, 56 per cent acquired their handset free of charge or without additional monthly payments.
Telsyte estimates that there were 15 million Australian smartphone users at the end of 2013, an increase of 2.6 million over 2012. Android remained the leading platform with a just over 50 per cent of the installed based, followed by Apple (42%), and “Others” which includes Microsoft, Blackberry, Symbian, etc, with 8 percent.
Telsyte research shows that repeat purchase intentions are increasing as users seek familiarity of platform or model. 73 per cent of iPhone users (up from 71% in 2012) who intend to purchase a smartphone are looking to buy another iPhone. Android repeat purchase intentions are at 56 per cent (up from 52% in 2012).
The purchase of new handsets has created a glut of second-hand “hand me down” handsets. The gifting, “hand me down” and “second-hand “user segment nearly doubled in the 12 months ending 2013.
The younger generation continues to lead the smartphone charge with nearly half (46%) of people under 34 planning to purchase a new smartphone within the next two years. More than half of this age group rate the camera quality of the smartphone as “important or critical”.
Telsyte expects Android to hold at least half the market until 2018 with no immediate threat to its dominance in the mid-market. However, outside the main two operating systems (iOS and Android), Telsyte expects challenger platforms to increase their share from 8 per cent in to2013 to 16 per cent by 2018. Microsoft is expected to be the biggest challenger, but a range of others including Tizen, Sailfish and Firefox are expected to battle it out for third spot.
Telsyte Senior Mobility Analyst Alvin Lee says despite the dominance of iOS and Android, the battle for the mobile OS is entering a new phase as vendors to look to differentiate from Android and begin supporting new OS initiatives.
“It’s possible that Google will experiment with Chrome-based smartphones as an alternative to Android at some point,” Lee says.
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For more information on accessing Telsyte research please contact Sam Yip on +612 8297 4607 (This email address is being protected from spambots. You need JavaScript enabled to view it.).
About Telsyte’s Australian Smartphone Market Study 2014
The Telsyte Australian Smartphone Market Study 2014 is a comprehensive report which provides subscribers with:
Market sizing, platform and vendor market shares and forecasts
End user trends across devices, services and mobile media
Discussions on strategic issues including platform and manufacturer trends
Product reviews and insights
In preparing this report, Telsyte used:
• Financial reports released by mobile carriers, manufacturers and service providers.
• Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,018 respondents.
• On-going monitoring of local and global market and vendor trends.
About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au
