24 May 2023
New Zealand Smartphone Market Declined by 4.2% in 1Q23, Says IDC
AUCKLAND, New Zealand, May 24, 2023 – According to the International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker, the New Zealand smartphone market declined by 4.2% year-on-year (YoY) in 1Q23, shipping 336,000 units.
Consumer demand remained stagnant due to uncertainty surrounding the upcoming budget and the 2023 general elections. Consumers are also unnerved by the talk of recession, high inflation and increasing interest rates. The increasing cost of living is not helping the situation, with higher prices for housing, food and transport leaving less money in hand for household items and electronics.
Inventory remains high in the channels with the market entering a spell of unloading and adjustment. Vendors have begun consolidating their range of devices and continue to introduce upgraded model variants to entice consumers to refresh their devices and propel demand.
"The start of 2023 was as expected, with price and budget on the mind of consumers when purchasing electronics," said Zachary Candy, Lead Analyst, Mobile Phones Research at IDC New Zealand. "A shift was seen towards more premium devices in 1Q23, with large shipments of Apple’s iPhone 14 series and the recently launched Samsung Galaxy S23 series models helping to maintain a high average selling price (ASP) for the New Zealand smartphone market,” adds Candy.
Vendors are quietly optimistic as the market, although slow, has been boosted by new devices and high ASP premium models. Vendor share has been relatively consistent with previous quarters. Samsung took back the first spot, in line with seasonality, while HMD was bumped out of fifth place by TCL. Meanwhile OPPO, and the newly coined 'One New Zealand', formerly Vodafone New Zealand, have maintained their respective positions, although they both improved their share compared to 1Q22, performing particularly well in the low-end and mid-range price bands.
In the premium segment, the new Samsung Galaxy S23 Series performed extremely well, supported by significant trade-in-values offered by mobile phone carriers, as well as additional discounts for customers that signed up to 24- or 36-month interest free contracts. The Apple iPhone 14 series continued to be a popular device with consumers. A surprising new entrant, the 'OPPO Find N2 Flip', outperformed expectations, adding variety and competition to the foldable phone market.
The New Zealand Smartphone market is facing a challenging outlook due to wavering consumer demand in the first half of 2023. However, demand is expected to improve in the second half of the year, bolstered by sales events and strategic promotional activities. IDC expects the overall smartphone market to contract by a low single digit percentage YoY in 2023.
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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 1,300 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 @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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One New Zealand Group Ltd., OPPO Electronics Corp., TCL Technology, Apple Inc., Samsung
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