High-end shift lifts NZ smartphone market - Mobile World Live

High-end shift lifts NZ smartphone market

11 MAR 2019

A move to more expensive smartphones in New Zealand in 2018 fuelled a double-digit increase in revenue despite overall shipments dipping 1.6 per cent year-on-year, IDC data showed.

Shipments of models priced NZD900 ($612) and over rose 24 per cent in 2018, accounting for 40 per cent of the market compared with 33 per cent in 2017 and 29 per cent in 2016.

Meanwhile, shipments in the low-end (below NZD300) declined 19 per cent, representing 32 per cent of the total compared with 40 per cent in 2017 and 49 per cent in 2016.

Devices priced NZD300 to NZD500 increased 43 per cent annually and accounted for 18 per cent of the market versus 13 per cent in 2017, while shipments of devices priced NZD500 to NZD900 accounted for 9 per cent of the 2018 total, from 14 per cent in 2017.

An increase in the ASP led to a 21.6 per cent jump in smartphone revenue year-on-year.

Scott Manion, IDC New Zealand market analyst for client devices, said consumers are willing to invest more in devices because they’re becoming increasingly reliant upon them in their daily lives.

He noted that while vendors benefit from greater revenue in the short-term, higher-end devices lead to longer life cycles. A consumer in New Zealand now owns a smartphone for an average of 3.7 years.

This longer lifecycle in combination with a saturated market will likely contribute to decreased unit shipments in future, IDC said.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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