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Publication date: 31 Aug 2023

New Zealand Smartphone Shipments Continues Decline with 12% drop in 2Q23, Says IDC


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AUCKLAND, NEW ZEALAND, August 31, 2023 – According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, the New Zealand smartphone market declined by 12.1% year-on-year (YoY) in 2Q23, shipping 312,000 units. This marks the third consecutive quarter of decline, driven by weak consumer demand, tough economic conditions and vendor activity including portfolio consolidation and inventory control activity.

"We expect to see some uplift in the second half of 2023 compared to the first half, as the key market players prepare for new launches and prepare for sales during the holiday period,” said Zachary Candy, Lead Analyst, Mobile Phones Research at IDC New Zealand. “This is despite high inflation, high interest rates and speculation from economists on the future state of the economy which is predicted to have flat or negative growth for the remainder of 2023 and the 2024 period.”

According to Stats NZ, the NZ Consumer Price Index (CPI) grew by 6% in the year to June 2023. This is down slightly from the previous quarter, however, the cost of goods and services remains elevated and prices are rising at levels not seen since the 90's. Increasing costs have weakened demand, resulting in vendor push to help generate demand. Promotional activities were paradoxically combined with conservative shipping of smartphones, largely by vendors preparing to launch updated models, and to avoid getting stuck with excess stock of older models.

4G smartphone shipments came above IDC's forecast in 2Q23, bringing down the overall ASP by 5% YoY. Vendor share remains consistent with the first quarter of the year, apart from HMD's Nokia brand that moved into the top 5 with the introduction of its new C series line up: The Nokia C02, Nokia C12, and Nokia C32.

"Dreary consumer demand is not the only challenge vendors are facing. Competition in the premium and foldables segment is heating up," adds Candy. OPPO's new Find N2 Flip has been performing valiantly in the foldable space. Although this segment is expected to remain a two-horse race in New Zealand in the near future.


The challenging economic outlook is expected to keep demand subdued for the remainder of 2023, however, a noted improvement is expected over the first half of the year. With the upcoming sales season ahead of us vendors are expected to help drive demand through aggressive promotional activity. Key brands, Apple, OPPO, and Samsung all have exciting premium launches in the second half of the year that are expected to help lift the ASP of the smartphone market.

For media inquiries, contact Michael de la Cruz at  or Miguel Carreon at

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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 Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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