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TECHNOLOGY / INDUSTRY

EXCLUSIVE: OZ Smartphone Market Smashed As Sony, Motorola & Telstra Slump

By David Richards | Monday | 16/05/2016

The Australian smartphone market has taken a pounding, dropping 23% during the past 12 months, the feature phone market has fallen by 63% according to IDC.



 New IDC research reveals that in Q1 2016, Apple is still the #1 smartphone brand despite a slump of 210,000 units from 1,140,000 units in Q1 2015 to 930,000 units in Q1 2016.

Major victim of the downfall are Sony and Motorola while Huawei who been investing heavily during the past two quarters has only managed to sell 57,700 units in Q1 2016 Vs 59,900 in Q1 2015.

The Lenovo owned Motorola brand saw their unit share fall by 27,000 units. At Q1 2015 the Chinese Company sold 31,000 Motorola branded smartphones, by Q1 2016 this had fallen to 4,000 units a fall of 83%.

Another victim of the slump is Sony whose sales slumped over 85%. In Q1, 2016, the Japanese Company only managed to sell 7,000 units, Vs 62,000 units in Q1 2015, a slump of 55,000.

At the top end Samsung delivered 604,000 units taking out the #2 slot while Alcatel delivered 126,500 units to cement their position as the #3 supplier in Australia.

Both LG and HTC who both delivered new Android smartphones last month recorded a fall in sales.

HTC did 60,000 units in Q1 2015 Vs 67,000 in Q1 2015. LG G4 sales slumped to 17,800 units.
 
Another big loser appears to be Telstra who saw sales of Telstra branded handsets slump by 50,000 units to 108,000 in Q1 2016 Vs 168,000 units at Q1 2016.

According to industry sources Optus and Vodafone are believe d to have stripped share away from Telstra during the past 12 months by selling branded mobile devices Vs a house brand model that is made by ZTE.

ZTE who have been a major supplier to Telstra is now selling ZTE branded handsets directly by a combination of retailers and carriers. In 2015 the Chinese Company who is outselling several of the major brands sold 42,000 ZTE Branded units in Q1 2015 Vs 39,000 units in Q1 2015.

Oppo whose sales were affected by the collapse of Dick Smith only managed to sell 7,000 units in Q1 2016 however the Chinese manufacturer has signed a major deal with JB Hi Fi to range the Oppo range.

The Company that is now the 5th biggest mobile brand in the world is believed to be spending over $2M dollars with JB Hi Fi trying to grow their brand in Australia a move that IDC could lead to growth for Oppo.

Bilal Javed, Market Analyst at IDC Australia said that the recent slump was one the biggest downturns in mobile phone sales recorded in Australia.

"The market is down and when Apple go down the overall market goes down". He said.

"Where the Australian mobile is now at is that it has reached saturation point. 80% of the overall market is consumer and this market is driven by contracts. A great deal of contracts will become renewable in 2017".
 
He said that Chinese brands such as Alcatel, ZTE and Huawei were now stripping share away from brands such as Sony, Motorola, HTC, and LG because they were delivering "value for money sub $400 and $300 smartphones".

"The Chinese brands are aggressively chasing marketshare and they are investing in the Australian market in an effort to grow share.
 
In an unusual move Chinese brand Huawei has chosen not to supply or confirm their sales to IDC moving forward. Huawei were not available to comment.

Both Sony and Motorola were also asked to comment on their slump in sales. No comment was forthcoming. 

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