Oppo is one of the big losers in the smartphone market while HMD Global’ s Nokia and Google have lifted share in the Australian market, according to IDC Research who claims that the overall market has declined 7.6% Year-on-Year (YoY) in 1Q23, 1.6 million units were shipped in the period.
Oppo whose sales declined 23% last financial year is down 11.6% YoY in 1Q23 with their market share slipping to just 5.4%.
HMD (Nokia) grew by 4.1% YoY in 1Q23, with a market share of 3.2%. Its strategy of introducing a wide range of models ensured a strong market presence and improved performance.
Google was able to deliver record growth in 1Q23, reporting 44.9% YoY growth and a market share of 2.9%.
The improved supply chain and discounts on the Google Pixel 7 and 7 Pro models helped to drive the growth, another key performer was Motorola.
Samsung sales fell 13.2%.
IDC claims that the market remains subdued, with inflation hovering around 7% and higher interest rates starting to weigh down on consumer demand towards the end of the quarter.
The drop in consumer demand can be attributed to high inflation and growing macroeconomic concerns. This has led to high inventory levels across channels, so vendors are adopting a cautious approach by limiting their inventory into the channels.
Shipments in most price segments dropped, except for the premium segment which was driven by the Galaxy S23 series and the iPhone 14 series.
This resulted in a 15% YoY increase in the average selling price of $1,222 at the top end of the market,
Gains in the premium market ($1,000+) drove a 15 per cent increase in the ASP.
In the last quarter, Apple delivered 728,000 units into the Australian market while Samsung delivered 578,000 units.
“The combined pressure of macroeconomic uncertainty and the higher cost of living is making consumers rethink how often they should refresh their phones.
Consumers are willing to hold on to their phones longer, even if they must spend more on a premium handset,” said Yash Gupta, Lead Analyst for Mobile Phone Research at IDC Australia claims.
The overall leader was Apple who had a challenging quarter with a mere 0.6% YoY growth in its shipments in 1Q23.
Currently the US business is investing in marketing in a clear out existing stock ahead of a new phone launch in September 2023.
The iPhone 14 Pro/Pro Max and the restocked iPhone 11 performed well in both carrier and open channels.
Samsung shipments declined by 13.2% YoY with a market share of 35.1% in 1Q23.
Its newly launched S23 series and Galaxy A series performed reasonably well claims IDC.
Like Apple the South Korean Company is also investing in marketing in an effort to clear out stocks and maintain its share.
2023 Outlook
In 2023, the Australian smartphone market is expected to decline by low single digit percentage as consumers spend cautiously and economic factors weigh down on their disposable incomes.
Although the end-of-financial-year sales in June are expected to provide some respite in 2Q23, the overall market is anticipated to be under stress.
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