Australian Mobile Phone Market Hit Seasonal Low in Q1 2014

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A total of 2.05 million mobile phones were shipped in Q1 2014, recording 22% quarter on quarter (QoQ) and 17% year on year (YoY) decline as the market rationalised following a peak Christmas season last quarter.

The general migration from feature phone to smartphone continued on into the first quarter of 2014 as expected, resulting in a -38% decline in feature phone shipments. Smartphone shipments, however, declined as well by -20% QoQ, caused by a seasonal lull resulting from the transition period between two major product launches in the market.

"The smartphone market in Q1 was subdued when the initial hype over Apple's new iPhone 5s and 5c tapered off from last quarter. Consumers were also holding off their purchases in anticipation for the next wave of Galaxy S smartphones from Samsung, then rumoured to be in Q2," says IDC's Senior Market Analyst, Amy Cheah.

Android continue to hold the largest share of the overall market with Samsung leading the pack. The vendor took to reducing prices of older generation Galaxy S phones ahead of a highly anticipated Galaxy S5 launch, regaining share from Apple as demand for iPhone 5s and 5c normalises.

IDC expects 4G LTE adoption and migration from feature phones to remain key drivers of smartphone adoption, with a forecasted growth of 5% in smartphone shipments by 2014. Smartphone screen sizes are also expected to be larger as economies of scale drive cost of display panel downwards. "While still niche now given the high price points, phones with screens larger than 5 inches, or more commonly known as Phablets, will become mainstream as lower display cost opens up greater opportunities for affordable low-end Phablets in the long run," says Cheah.

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Tags: Australia 

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