Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Smartphone Shipments, The Beginning of The End?

IDC MEDIA RELEASE: Smartphone Shipments, The Beginning of The End?

AUCKLAND, 1st March 2018: According to IDC’s recently published fourth-quarter mobile phone shipment results, tracked from October to December 2017, the New Zealand smartphone market has observed a full year on year shipment decline. This is this first time the New Zealand smartphone market has experienced a full year on year decline since IDC began tracking smartphone shipments in 2008.

1,602,000 smartphones were shipped in 2017, down 14.5% on the 1,874,000 shipped in 2016.


Chayse Gorton, Market Analyst for IDC New Zealand, suggests "there are at least three factors contributing to this decline: a saturated market, a change in vendor strategy, and new features failing to drive faster consumer upgrade cycles."

The smartphone market is saturated. IDC estimates 79% of consumers owned a smartphone in 2017, leaving a small number of consumers left to make the transition from feature phones to smartphones.

Many smartphone vendors appear to be increasing their focus on profitability, rather than chasing shipment volumes, through increasing the average selling prices of their devices. For example, the average selling price of smartphones for both Samsung and Apple, the two market leaders increased 14% YoY. Huawei, who may have been previously considered as a mid-range vendor introduced the Mate 10 Porsche edition in 2017, priced at over $2000 NZD.

IDC estimates that the average time a consumer holds on to their smartphone remains around 3 years, despite new features continuing to be introduced in the latest devices. Gorton believes, "New Zealand consumers do not refresh simply because a new feature has been introduced to a smartphone, instead they must feel that there is a significant benefit to be attained through upgrading." For example, many vendors have introduced some form of artificial intelligence, dual cameras, and reduced bezels, etc. into their devices, however, the benefits of such features do not yet appear to be adequately portrayed to consumers, and until they are, these features will drive limited upgrades.

Although IDC forecasts smartphone shipments to decline in 2018, revenue is set to increase. This will be primarily driven by an increased average selling price per device.

It is unlikely that this is the beginning of the end of smartphones, but considering the market’s many challenges, it is clear that vendors are already altering their strategies to continue to grow revenue in a saturated market.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

'Visionary' Leaders: Primary Sector Council Announced

A group of visionary agribusiness leaders is set to help our primary sector capture more value from its work, Minister of Agriculture and Rural Communities Damien O’Connor says ... More>>

ALSO:

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:

Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO: