Telsyte expects Apple to boost smartphone market

In second half of 2017.

Australian smartphone sales are on track for a strong calendar year with booming first half sales set to continue into the second half of the year, according to a new study by emerging technology analyst firm Telsyte.

New findings from the Telsyte Australian Smartphone & Wearable Devices Market Study 2017-2021 shows 4.4 million smartphones were sold during 1H 2017, up 16% compared to H1 2016.

Android smartphones held market leadership (55% share) with the top three Android vendors being Samsung, Huawei and Oppo. However, Telsyte believes Apple will emerge as market leader in the second half of 2017, when it is expected to expedite the release of an 8th edition iPhone to feature alongside the iPhone 7S and iPhone 7S Plus.

“The arrival of at least three new iPhones, as well as the long-held strategy of keeping older models available at lower prices, will help Apple target its loyal customer base” Telsyte managing director Foad Fadaghi said.

Telsyte estimates around 4.7 million smartphones will be sold in 2H 2017, a result that could see Apple beat 2014 sales when it first released the larger format iPhone 6.

Telsyte believes a number of factors will drive iPhone sales including:

  • Almost 1 million active iPhones in Australia will not receive the latest iOS 11 update made available in September 2017, leaving models older than the iPhone 5s unsupported.
  • The iPhone repeat purchase intention in Australia as measured by Telsyte is at an all-time high: 93%, compared to the second highest, Samsung with 74%.
  • Aging handsets are creating pent-up demand, with nearly one in four iPhone users using an iPhone that is three years or older.
  • Aggressive marketing and larger data cap offers by mobile service providers. Telsyte estimates up to 65% of iPhone sales in 2H 2017 will be via mobile contracts, compared to around 50% in previous iPhone “S” model years.
  • The inclusion of substantial new features in the field of Augmented Reality (AR) and AI capabilities that will attract upgraders.
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