Foldable iPhone inevitable, but not coming in 2022
SYDNEY, AUSTRALIA – Smartphone sales in Australia passed 4 million in the first half of 2022, up only 2 per cent from 3.98 million a year ago, with Android gaining share, according to new research by emerging technology analyst firm Telsyte.
The Telsyte Australian Smartphone & Wearable Devices Market Study 2022-2026 found Android sales outpaced iPhones in a sign that consumers are looking for new form factors and holding onto handsets for longer.
The average replacement period is now 3.3 years and is even higher for iPhone users as consumers are finding less reasons to upgrade.
Despite this, Telsyte believes technology products such as smartphones and wearables are becoming less susceptible to economic downturns as they are deeply integrated into consumers’ lifestyles and considered ”essential” by many.
While cost-of-living pressures are growing, smartphone dependence is also increasing with nearly half (49%) of users claiming their “main digital device” is a smartphone, especially among 25 to 44-year-olds (60%).
However, supply chain disruptions and chip shortages might influence the overall market, as might price rises.
The study forecasts smartphone sales will increase marginally to reach 4.6 million in the second half of 2022, an increase of only 3.1 per cent over the same period last year.
1 in 3 iPhone buyers interested in foldables
The study found a combination of Google’s competitively priced Pixel 6 and Pixel 6 Pro (launched in October 2021); mid-range devices from brands including Oppo, Motorola and Nokia; and new Galaxy S22 series and foldable devices from Samsung have given Android a boost over the reporting period.
Premium Galaxy S & Z series increased their respective sales shares considerably compared to a year ago. After a solid performance with foldable devices reaching 6 per cent of total Android smartphone sales in second half of 2021, Telsyte expects foldable sales to finish the year strong and increase some 80 per cent for the full year 2022.
Samsung is enjoying a near monopoly in the foldable device market; however, Telsyte anticipates that at least one other Android manufacturer will release a foldable smartphone before the end of 2022.
While consumers’ interest in foldable smartphones is increasing, Telsyte does not expect Apple to release a foldable model in 2022, but might look to the new form factor to encourage users to replace older models faster than they might otherwise.
Telsyte surveys found 1 in 5 (19%) of those interested in buying new a handset was interested in foldables, of which one in three (34%) of those were iPhone users.
“Just as Apple moved into larger screen smartphones in 2014 following their growing appeal, a foldable iPhone is almost inevitable,” Telsyte Managing Director, Foad Fadaghi says.
Higher priced, modest upgrades might underwhelm buyers
While the overall demand for iPhones remains high – and Telsyte expects the trend to continue – economic factors could drive increasing considerations for refurbished, older models, and lower cost base models of the anticipated iPhone 14.
If Apple is to similarly release four models for the upcoming iPhone 14, Telsyte anticipates prices will increase for the iPhone 14 Pro and Pro Max models due to the rising cost of components.
Telsyte’s ongoing measurement indicates fewer than 20 per cent are willing to pay over $1,500 for a new iPhone.
Apple still has the highest repeat purchase intentions in the industry with over 90 per cent of iPhone users intending to purchase another iPhone. However, 45 per cent of users also plan to hold onto their iPhones for at least 4 years or until they are no longer usable.
Smart wearables riding high on fitness and hybrid work trends
Sales do not seem to be slowing down for wearable technology. Some 1.3 million smart wrist wearables (including fitness bands and smartwatches) were sold during the first half of 2022, up 7 per cent from a year ago. Sales of fitness bands and smartwatches both grew at 4 per cent and 9 per cent, respectively.
Australians are showing a keenness to stay on top of their fitness and health, and many are progressing onto their second or third smart wearable.
Telsyte’s study found that 58 per cent of Australians actively want to stay fit and healthy, and integration of health programs into smart wearables and apps is growing in acceptance.
Sales of smart wrist wearables are expected to grow in the second half of 2022 with bundled deals and demand for advanced health and fitness features.
Telsyte believes Google will release its Pixel Watch in Australia, pushing the adoption of Google’s Wear OS smartwatches – a strategic accessory for smartphone vendors to lock in customers and grow spend.
Smartwatches made up 70 per cent of total smart wrist wearables sales, and Apple remained the clear leader in the smartwatch market, followed by Samsung, Fitbit, and Garmin, in a growingly competitive market.
Demand for Samsung’s smartwatches was primarily driven by the latest Galaxy Watch 4 series that switched from Tizen (in Watch 3 series) to Google’s Wear OS, benefiting from the wider range of apps.
Smart wireless ‘hearables’ continue to shine
Along with smartwatches, sales of smart hearables have been given a boost through more Australians shifting to the hybrid work model.
The research found 8.4 million (37%) smartphone users were using a smart hearable at the end of June 2022, an increase of 1.8 million users from just a year ago.
The study found more than 1.4 million smart hearables were sold during 1H22, up 8 per cent over the same period last year and almost reaching the all-time high (1.46M) seen in 2020.
Apple and Samsung remained the top two vendors in the smart hearables market with a combined 74 per cent market share.
“Due to the attractive price points, smart hearables continued to be one of the most popular accessories to improve user experience on smartphones and computing devices,” Telsyte senior analyst, Alvin Lee says.
For further information on the study or media enquiries contact:
Foad Fadaghi
Managing Director
Tel: 1800 313 142
Email: ffadaghi@telsyte.com.au
Alvin Lee
Senior Analyst
Tel: 1800 313 142
Email: alee@telsyte.com.au
The Telsyte Australian Smartphone & Wearable Devices Market Study 2022-2026 is a comprehensive study that provides subscribers with:
Smartphone market sizing estimates, platform and vendor market shares and forecasts
Smart wrist-based wearables market sizing estimates, platform and vendor market shares and forecasts
Smart hearables market sizing estimates, platform and vendor market shares and forecasts
End user trends across devices, application usage, platforms and operators
Purchase intentions and acquisition channels
Strategic analysis of recent market trends and developments
Telsyte measures smart wearable devices in the Telsyte Australian Smartphone & Wearable Devices Market Study 2022-2026 as computing accessories:
Smart wrist wearables: worn on a user’s wrist typically paired and controlled via a smartphone. Examples includes products from Apple, Asus, Fitbit, Fossil, Garmin, Huawei, iFit, Misfit, Oppo, Samsung, Skagen, SPACETALK, TomTom, Withings and others.
Smart hearables: smart earbuds and headphones that support digital assistants and are typically paired with a smartphone. Examples include Apple Airpods, Samsung Galaxy Buds, Microsoft Surface Headphone and Google Pixel Buds.
In preparing this study, Telsyte used:
An online survey conducted in August 2022 with a representative sample of 1,186 respondents, 16 years and older.
An online survey conducted in December 2021 with a representative sample of 1,060 respondents, 16 years and older.
Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.
Financial reports released by service providers, manufacturers and retailers.
Ongoing monitoring of local and global market and vendor trends.
Analyst reviews of leading smartphone and wearable devices.
Editor’s note:
Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used. Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smartphone sales in Australia and has been providing insights on mobile technologies since 2006.
About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology. For more information visit www.telsyte.com.au
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