Telsyste, a research firm, points out that the Australian smartphone market saw a year-on-year decline in sales in the second half of 2019, and points out multiple factors for extending the replacement cycle.
The cost of high-end handsets and the lack of attractive 5g models extended the replacement cycle, resulting in a 5% drop in sales to 4.3 million units, the company said.
The average replacement cycle of smart phones has increased from 2.8 years at the end of 2018 to 3 years, among which the replacement cycle of mid-tier models is significantly longer, usually 3.3 years.
Given the high cost of new phones, more and more Australians are buying used and refurbished smartphones, more than doubling in the past two years to about 10%. More than 15% of the iPhones purchased in 2019 are used or refurbished.
Despite a 3% drop in sales in six months, Apple's market share remained at 42.4%. Android mobile sales fell 6% year on year, with Samsung, OPPO and Huawei in the top three.
Telsyste estimates that Huawei's sales are down more than 20%, and that the decline is expected to continue as new models, including mate 30 pro, will not support Google mobile services (GMS).
The company believes that if more 5g devices with prices lower than $1000 are available and Apple releases compatible models, the annual sales volume in 2020 could reach a peak of 9 million units.
In addition, about 20% of smartphones currently in use have been in use for at least five years, indicating that the time for upgrading is ripe.
Although the starting point is not high, consumers think 5g is important when choosing smart phones. Telsyste's latest consumer survey found that two-thirds of Australians over 16 who plan to buy smartphones by 2020 will choose 5g.
