Record-breaking smartphone prices see Aussies put iPhone purchases on hold
It’s not just you. More Australians are ditching costly Apple smartphones for cheaper rivals as prices continue to break the $2000 barrier.
Record-breaking smartphone prices hikes have finally slowed down Aussies looking for the newest, shiniest devices, a new report revealed today, with sales of mobile phones down and Apple losing market share to cheaper rivals.
The study, by research firm Telsyte, found smartphone prices rose 13 per cent last year, and Australian consumers bought 200,000 fewer new handsets as a result.
The findings come after Apple’s flagship iPhone Xs Max smashed through the $2000 barrier at its September release, and after Samsung set a new high price for its Galaxy Note 9 at $1799.
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But analysts say Australians are using their smartphones more than ever and could take a second look at new models after 5G editions arrive later this year.
The Telsyte Australian Smartphone and Wearable Devices Market Study revealed Australians bought 4.6 million smartphones in the last half of 2018, down from 4.8 million phones the year before.
Apple’s share of smartphone sales also dipped to 42 per cent, down from 44.7 per cent during the six-month period, while Google Android smartphones increased in popularity by three per cent to 58 per cent.
Telsyte managing director Foad Fadaghi said rising prices clearly stopped consumers buying new smartphones, and as many as one in four may hold off on buying a new one until 5G-ready handsets arrived.
“There is a clear imperative for carriers to bring 5G handsets to market as soon as possible given the lengthening of the replacement cycle,” Mr Fadaghi said.
The report also found one in three Aussies considered 5G connectivity important in new smartphones, although Mr Fadaghi warned that buyers may still try to hang on to their handsets for “three years or longer”.
Kantar Worldpanel also found Australians’ love affair with the iPhone was slipping, with sales of Apple’s mobile devices experiencing “a considerable decrease” — down 2.9 per cent in the last three months of 2018.
The company’s newest and most expensive iPhones accounted for 15.2 per cent of sales during the final quarter of the year, according to Kantar, with young men buying the largest and most expensive model and young women opting for the standard iPhone Xs.
The company’s phones set a new record top price of $2369 at their September launch, though added features including a 6.5-inch OLED display, facial recognition security, and storage up to 512GB.
