5G now a key consideration for smartphone buyers
More than one in three Australians now consider compatibility with 5G networks to be an important criteria while choosing a smartphone, according to research from Telsyte.
This percentage rises to more than 60% among those planning to purchase a smartphone before the end of next year, the research found.
Another factor impacting sales during the first half of the year was a longer replacement cycle among iPhone users, Telsyte said. Its research found that iPhone owners have a 25% longer replacement cycle compared to Android.
The average replacement cycle has also been prolonged — among those purchasing their smartphones outright, the average replacement cycle is now nearly three years. The average iPhone replacement cycle has grown by 30% to around 3.2 years, with Android replacement cycles growing 11% to around 2.6 years over the same period.
The wait for greater availability of 5G devices has impacted the smartphone market, with the number of smartphones sold during the first half of the year falling 6% to just over 4 million.
According to Telsyte, this slowdown is expected to continue, with the lack of 5G support likely to impact demand for iPhones in particular in the next 12 months. But the anticipated arrival of a 5G arrival in 2020 could provide a shot in the arm for the stagnating market.
“All the evidence is suggesting that we are set for a super cycle in 2020 as consumers replace ageing 4G handsets,” said Telsyte Managing Director Foad Fadaghi.
Telsyte said its research also identified an uplift in demand for smart watches. A total of 1.2 million smart wrist wearables were sold during the first half of the year, up 22% from a year earlier, with 69% of total devices sold being smart watches.
Apple maintained its lead of the Australian smart watch market, accounting for close to half (48%) of total sales during the six-month period. But rivals including Samsung, Fitbit, Huawei and Garmin all also registered healthy growth.
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