25 Mar 2021

Australian Smartphone Market Declines in 2020, but Signs of Recovery Emerge in Q4

SYDNEY, AUSTRALIA, March 26th, 2021 – Australia's smartphone market experienced a -7.3% year-on-year (YoY) decline in shipments in 2020, according to the latest figures by International Data Corporation (IDC). The global technology research and consulting firm's newly released Quarterly Mobile Phone Tracker shows smartphone shipments to the country fell to 7.5 million in 2020, down from 8.1 million in 2019.

The Australian smartphone market's performance varied heavily by quarter, impacted by COVID-19 and the measures put into place to contain the spread of the virus. "In the earlier part of the year, the decline was a result of supply issues caused by constraints in manufacturing as a result of lockdowns in the Asia-Pacific region. In Q2 and Q3, when local lockdowns came into play, the decline was more demand-driven, with Australian consumers reducing their spending in line with the economic downturn," says John Riga, market analyst for mobile phones at IDC Australia. "In Q4, with restrictions easing and consumer confidence growing, we saw significant YoY growth. This was bolstered by the release of Apple’s iPhone 12 in the quarter.”

The momentum gained in 2020Q4 is likely to carry through into 2021. “With restrictions continually easing, consumer and business sentiment rising, and Australia’s vaccine rollout underway, we’re likely to see YoY growth in both Android and iOS device shipments in 2021, in line with Australia’s economic recovery," says Riga. In the Android space, in particular, low-cost devices are expected to play a large role in YoY growth in shipments in 2021: "strong competition in low-cost price bands from manufacturers such as Samsung, TCL, OPPO and Nokia ensures that consumers will be presented with a wide array of options at any budget.”

5G device shipments are expected to account for a large portion of the Australian smartphone market in 2021, with 57% of smartphones forecast to be 5G compatible, compared with 27% in 2020 historical data. The increase in 5G devices will be driven by vendors, with Apple’s iPhone 12 and Samsung’s Galaxy S21 currently only offered as 5G compatible variants in Australia. Furthermore, low-cost 5G devices are expected to become more common in the Android space in 2021, with vendors aiming to drive down cost and provide 5G to a wider range of consumers.

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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


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