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The Australian smartphone market is expected to meet the global rate of decline by the end of 2020, according to recent analysis.
In Australia, smartphone shipments have been forecast to drop by 12.3 per cent year-on-year by the end of the year.
This is according to IDC’s Quarterly Mobile Phone Tracker report, with a range of factors set to cause havoc to the market.
Up until now, Australia has been relatively shielded from the smartphone shipment decline, with quarterly global declines outpacing Australian data by nearly double. However, IDC’s updated analysis brings the country in line with global predictions, which previously claimed 2020 would experience a worldwide shipment decline of nearly 12 per cent.
John Riga, associate market analyst, said the major driver behind Australia’s Q1 decline was due to issues with manufacturing and supply, but Q2 will have its own share of problems.
“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,” he said.
“Some vendors may also delay new product launches until the end of the year, leading to further declines in Q2 and Q3 shipment numbers."
To mitigate the lack of demand, average device selling prices may be shifted downward by vendors, Riga claimed.
“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,” he added.
Additionally, IDC research indicated that the smartphone market decline is not anticipated to continue past 2020, with a rebound predicted for 2021.
The updated forecast follows the reveal of data from research firm Gartner in early June that claimed local Q1 smartphone shipments fell by 10.3 per cent year-on-year.
By comparison, Australian smartphone sales during 2019Q4 saw smartphone sales grow by 6.4 per cent.
