25 Jun 2020

Australian Smartphone Market Expected to Decline Significantly in 2020 due to COVID-19

SYDNEY, AUSTRALIA, June 25th, 2020 – A 12.3% year-on-year (YoY) decline in shipments is expected for Australia's smartphone market in 2020, according to the latest figures by International Data Corporation (IDC). Newly released research from IDC's Quarterly Mobile Phone Tracker indicates that the market is likely to suffer from a range of factors over the next year.

"Issues in the manufacturing and supply of mobile devices were the driving factor behind declines experienced in 2020Q1, especially in the January and February sections of the quarter. However, with persistent economic uncertainty and higher levels of unemployment and underemployment, further declines may occur in Q2 and subsequent quarters, this time driven by a decline in demand as consumers become more careful with their spending. Some vendors may also delay new product launches until the end of the year, leading to further declines in Q2 and Q3 shipment numbers." says John Riga, Associate Market Analyst at IDC A/NZ.

In addition to declines in the overall level of shipments, the Australian smartphone market may experience a shift in the average selling price of devices. "A likely bi-product of consumer caution will be a preference for lower-cost devices in coming quarters. We've already seen a trend of consumers turning to mid-range devices in increasing numbers over past quarters. Current conditions, as well as the vast range of lower-cost devices being released each quarter will likely exacerbate this trend" says Riga.

However, not all is doom and gloom. IDC expects that the smartphone market will rebound in 2021, in line with the gradual recovery in macroeconomic conditions and consumer confidence.

Visit IDC Australia and New Zealand at http://www. idc.com/anz to learn more about the program and the research topics covered.

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About IDC Trackers

IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

Coverage

Regions Covered

Australia


Topics Covered

COVID-19, Smartphone