AUCKLAND, New Zealand, 11 December 2023 – According to International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker, New Zealand’s smartphone market declined by 13.5% year-on-year (YoY) in 3Q23, shipping 346,000 units, marking its fourth consecutive quarter of YoY declines. However, shipments grew by 10.9% in 3Q23 compared to 2Q23. As predicted, the market began to make headway in the second half of the year, as vendors brought in stock in anticipation for the end of year sales period, and channels started stocking up with new models.
3Q23 was marked with new launches by the three major vendors in New Zealand: Apple, OPPO, and Samsung. All three had premium launches during the quarter, which were well-received by consumers. While the Samsung Galaxy Z5 Series and Apple iPhone 15 series competed for share in the high-end and ultra-premium price segments, the OPPO Reno 10 Series fit neatly into the mid- to high-end segment.
“The fourth quarter of 2023 will see intense competition between these players, as their premium flagship series go head-to-head over the sales period, as well as their entry level 4G and 5G devices with launches across all price bands in 2H23,” said Zachary Candy, Lead Analyst, Mobile Phones Research at IDC New Zealand.
“Consumer spending remains cautious as the cost-of-living crisis continues, and the Reserve Bank of New Zealand continues to wage its war against inflation. Interest rates are still high, with several banks increasing their interest rates in October, a sign that the ceiling might not yet have been met in the third quarter as previously predicted. Although still high, prices appear to be increasing at a slower rate than previous quarters, a promising sign for vendors and consumers alike,” added Candy.
Low- to mid-priced 4G units introduced by OPPO and Samsung proved popular with price conscious consumers, while a wider range of 4G and 5G mid-priced devices helped drive an increase in Average Selling Price (ASP). This, combined with large volumes of premium devices shipped in 3Q23, led to a 10.3% annual increase in ASP. The Top 5 rankings did not change in 3Q23, but OPPO outperformed expectations and rose to 15.3% share, a record high since its introduction to the New Zealand market.
“Competition in the premium and foldables segment continues to flourish, with Samsung’s Galaxy Z5 Series performing well across all channels,” said Candy. “OPPO’s recent November launch of the Find N3 Fold continues to drive this form factor forward. The Find N3 Fold is available at all key telco’s and in the open retail channel. It is yet to be seen if this segment will attract new competitors,” added Candy.
Note: *The “Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
*Figures in tables/charts rounded to the first decimal point.
Outlook
With the 2023 sales period in full swing, many retailers have already stocked up on Android smartphones for Black Friday sales. Additionally, low-end stock has filled the channels in preparation for Back-to-School Promotions in January as well as the subsequent Back-to-Uni promotions. The economic outlook for 2024 is consistent with previous expectations. Demand is expected to remain subdued for the remainder of 2023 and throughout the 2024 period.
For media inquiries, contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon at mcarreon@idc.com.
-Ends-
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 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT Benchmarking and sourcing, 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.
All product and company names may be trademarks or registered trademarks of their respective holders.