Premium devices now command more than half of Australian smartphone sales

August 17, 2026

Apple nears OS parity as component costs set up second-half price rises.

SYDNEY, AUSTRALIA – More than half (56%) of all smartphones sold in Australia in the first half of 2026 were premium devices priced above $1,000, with more than one in five costing above $2,000 (ultra-premium), according to new research from the Australian emerging technology analyst firm, Telsyte.

The Telsyte Australian Smartphone & Wearable Devices Market Study 2026 found total smartphone sales reached 3.87 million units in the first half, up one per cent year-on-year, with the premium segment adding 10 percentage points of share over two years.

Apple accounted for almost half (49.4%) of first-half sales, bringing it within reach of Android. iPhone sales rose seven per cent while Android volumes fell five per cent year-on-year, with the weakness concentrated in sub-premium handsets and premium Android volumes still growing.

Telsyte believes some iPhone buyers have brought upgrades forward amid reported expectations of component-driven price increases. Apple, Samsung and Motorola are the top three vendors, with Motorola and Oppo separated by a slim margin having traded third and fourth positions several times over the past two years.

The first-half result was also driven by inventory brought into the market ahead of rising memory and component costs, which has kept retail pricing broadly stable and insulated buyers from underlying movement. Telsyte believes that buffer is thinning, and that stock replenished at current prices will bring more widespread increases through the second half of 2026.

Telsyte forecasts 8.4 million smartphones will be sold in Australia in 2026, down three per cent year-on-year, with the decline weighted towards the second half as memory-driven cost increases are reflected more broadly across the device range. Demand is expected to remain concentrated in the premium tier, supported by consumer intent to future-proof the next device and treat it as a long-term investment.

Australia's average smartphone replacement cycle has shortened to 3.4 years, down from a peak of 3.9 years at the end of 2023. The decline is most pronounced among Android users, whose cycle has compressed by 0.7 years compared with 0.4 years among iPhone users, reflecting the concentrated impact of the 2024 3G network closure on lower-cost handsets.

Budget users now hold their devices twice as long as ultra-premium buyers, concentrating the most commercially active upgraders at the top of the market. That segment is the primary audience for premium devices, on-device AI and next-generation form factors such as foldables. Apple and Samsung lead the premium and ultra-premium tiers, where competition from brands including Oppo, Google, Motorola, Nothing and Honor is intensifying as more players push upmarket.

Despite persistent cost-of-living pressure and the increasing popularity of refurbished phones, Telsyte research found 85 per cent still prefer to purchase a new device, managing affordability by choosing last year’s flagship models or switching brands.

Over 11 million Australians are using device-integrated AI features on their smartphones, from writing assistance and photo editing to live translation, making the smartphone the most widely adopted AI device in the country. Only one in three, however, say their next smartphone must include advanced AI features, with battery life, performance and storage remaining the dominant considerations. While 58 per cent are willing to allow AI access to selected apps and information on their device, only 21 per cent are comfortable with AI suggesting actions without being asked.

Foldables gaining traction, an Apple entry would ignite foldable market

The study found foldable smartphones now account for approximately five per cent of annual smartphone sales, but are yet to cross into the mainstream. Telsyte believes an Apple foldable (expected in 2026) will be the single largest catalyst for the category.

Consumer appetite for an Apple foldable is high with one third of iPhone users would consider a foldable iPhone, rising to nearly half (46%) among users of the iPhone 15, 16 and 17 Pro series. One in six (17%) of those Pro series users would pay $3,000 or more, placing early demand squarely in the segment that already spends the most.

If Apple launches a foldable iPhone in 2026, Telsyte believes it could become the second largest foldable vendor in Australia within its first year, assuming supply is not constrained.

Telsyte estimates a price premium of 30 to 40 per cent above the iPhone Pro Max, placing the device in the ultra-premium tier, the strongest growth segment in the market today. Samsung is expected to retain the lead with its broadest line-up yet, including a newly designed passport-style Galaxy Z Fold 8.

iPhone users are evenly split between the larger, taller book-fold style and the more compact flip, against a clearer preference for the book-fold format among Android users (58%).

“Despite the potential lofty prices, a new foldable iPhone could finally propel the category into the mainstream” Telsyte principal analyst Foad Fadaghi says.

Ecosystem wearables deepen as smart glasses emerge

More than 800,000 smart wrist wearables were sold in the first half of 2026, down eight per cent year-on-year as the category matures and budgets tighten. Apple, Samsung and Garmin lead, with smartwatches accounting for more than 70 per cent of sales. Demand is now driven by ecosystem lock-in, fitness and health sensing upgrades and deeper assistant integration.

Smart ring adoption remains embryonic, with fewer than five per cent of Australians owning one and Samsung leading the category. Interest sits at just over a quarter (29%), reflecting the fitness and health tracking wrist wearables already deliver to a far larger installed base.

Smart hearables sales reached more than 1.2 million units over the same period, up 16 per cent year-on-year, driven by new product releases, bundling and a more affordable upgrade path than other personal devices. Close to half (48%) of users wear their devices daily and more than a quarter use voice features every day, making hearables a natural companion to on-device AI.

Smart glasses adoption is equally embryonic, though interest runs well ahead of smart rings, with two thirds (66%) saying they would consider one. More than two thirds of current owners wear Meta's AI glasses, including Ray-Ban and Oakley branded models. The most sought-after features are hands-free photo and video capture (28%), real-time information about what they see (23%) and reduced phone usage (22%).

"AI is moving from something Australians open to something they wear," says Telsyte Senior Analyst Alvin Lee.

Telsyte expects sub-$100 glasses and premium ecosystem entrants to broaden the category over the next twelve months, though social and privacy concerns are likely to persist. Nearly half (47%) of Australians say they would feel self-conscious wearing smart glasses in public, and only 30 per cent are comfortable with people around them regularly wearing camera-equipped smart glasses.

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 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

In preparing this study, Telsyte used:

An online survey conducted in April and May 2026 with a representative sample of 2,023 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.
On-going monitoring of local and global market and vendor trends.
Analyst reviews of leading smartphone and wearable devices.

Telsyte measures smart wearables as:

Smart wrist wearables: worn on a user’s wrist typically paired and controlled via a smartphone. Examples include products from Apple, Fitbit, Fossil, Garmin, Google, Huawei, Oppo, Samsung, Polar, Ryze, SPACETALK, Withings and others.
Smart hearables: smart earbuds and headphones that support digital assistant and typically paired with a smartphone. Examples include Apple Airpods, Samsung Galaxy Buds, Google Pixel Buds, Oppo Enco Clip2, JBL Reflect Flow Pro+, Jabra Elite, Bose QuietComfort® 45, and Sony LinkBuds.

Telsyte covers smartphones from Apple, ASUS, CAT®, Google, HMD, Honor, Motorola, Nokia, Nothing, Opel, OPPO, Samsung, TCL, Xiaomi, ZTE and others.

Editor’s note:

Telsyte's replacement cycle is calculated from the gap between each respondent's two most recent smartphone purchases, reflecting completed replacement behaviour rather than stated forward intent.

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.

Device-integrated AI refers to artificial intelligence capabilities built directly into consumer devices. Examples include Apple Intelligence, Samsung Galaxy AI, Gemini on Google Pixel devices, Moto AI and Oppo AI.

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

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Four in five AI users now engage monthly as Australia’s user base surges past 17 million

June 2, 2026

Rapid adoption meets rising caution as AI advertising tests consumer trust

SYDNEY, AUSTRALIA – Artificial intelligence has become part of everyday life for 17.4 million Australians (77% of the 16+ population), as the national user base grew by more than 6 million from June 2025 to May 2026, according to new research from Australian emerging technology analyst firm Telsyte.

The Telsyte Australian Artificial Intelligence Study 2026 found engagement has deepened sharply alongside adoption. Of the AI user base, four in five (14.3 million) engaged with AI at least monthly, up 61 per cent year-on-year – including 5.2 million who now use it every day, a 160 per cent surge from approximately 2 million in June 2025.

More than a third (35%) of users say they are using AI significantly more than a year ago, and nearly half (48%) report improved proficiency with AI tools over the same period.

ChatGPT leads as the competitive field widens

ChatGPT retains dominant market position with 13.8 million users, followed by Google Gemini (9.1 million), Meta AI (5.6 million) and Microsoft Copilot (5.4 million). The top 10 is completed by Apple Intelligence (3.9 million), Samsung Galaxy AI (3.1 million), Claude (2.9 million), Canva AI (2.8 million), Grok (2.5 million) and CapCut (2.4 million).

Typing remains the dominant mode of AI interaction at 80 per cent compared with 20 per cent using voice, a gap Telsyte believes points to potentially significant runway for voice-driven AI experiences in smart home and in-vehicle environments (e.g. Android Auto, Apple CarPlay and Grok on newer Tesla models).

More than one in five AI users now use five or more services, a figure that nearly doubles among daily users. Telsyte believes service rotation is increasingly driven by use cases and free-tier limits, with standalone AI services facing more loyalty risk than those anchored within established platform ecosystems.

Search goes agentic as trust and advertising pressure converge

While AI is growing rapidly, it is doing so against a backdrop of consumer anxiety about pace and a foundational trust deficit that the industry has yet to resolve. The study finds 62 per cent of Australians feel technology is changing faster than they can keep up with, while just 35 per cent trust technology companies to use their data responsibly. These are foundational constraints that now directly bear on how AI providers monetise their growth.

The majority of AI users remain on free tiers and advertising is emerging as a way for AI service providers to generate revenue, with OpenAI already testing ads within ChatGPT in Australia and the United States.

Australians are broadly open to the concept, as 70 per cent would opt for a free, ad-supported service over a paid, ad-free alternative - yet only 27 per cent are comfortable seeing ads within AI-generated answers, and more than half (52 per cent) believe sponsored AI answers are less trustworthy than organic responses.

AI has reached the majority of Australians faster than almost any consumer technology before it, yet trust in the technology has not kept pace. Telsyte Principal Analyst Foad Fadaghi says advertising as a revenue model only sharpens that tension.

"If it erodes confidence in AI-generated answers, it cuts against the fundamental value proposition. That is a difficult trade-off to walk back."

The study also finds 12 per cent of Australians now identify AI tools as their primary means of finding information online, up from 5 per cent a year ago. Majority (81%) are aware of AI summaries in search results, with half indicating they would often rely on the summary without clicking through to the source.

Telsyte anticipates these shifts will pressure search, publishing and digital marketing models as AI summaries and agentic search experiences become more common.

For a market where Google remains the dominant search entry point, the implications for advertisers and publishers are immediate. E-commerce and retail sites are primed to retool content for machine consumption as AI agents increasingly guide product discovery and purchasing.

AI-native hardware finds its footing as the agent-first era takes shape

The smartphone remains the primary AI device, used by 78 per cent of AI users compared with 58 per cent accessing AI on computers. Built-in everyday features such as writing assistance, live translation and AI-assisted photo editing have made AI a natural and largely frictionless part of the smartphone experience. However, Telsyte notes that more demanding use cases – such as complex workflows, coding and locally run AI agents -continue to favour computer systems with greater processing capability.

AI on smartphones and other devices is moving beyond responding to prompts - anticipating needs, acting on context and executing tasks without being asked.

Over a quarter (27%) of Australian AI users have already used AI to complete tasks on their behalf - from product comparisons and inbox management to scheduling and online shopping - marking the early stages of agentic AI in practice. However, currently only 31 per cent said they are comfortable with AI playing a larger role in managing their everyday activities.

For anticipatory and agentic AI to work, devices need access to the personal data that makes contextual awareness possible. Australians are most comfortable granting access to calendar (32%), location (26%) and email (24%), with comfort dropping sharply for more sensitive categories including cloud storage, personal notes and payment methods - none above 12 per cent.

Willingness to delegate to AI comes with conditions. Nearly two in five (39%) would allow AI to complete tasks provided they approve the final step, rising to 66 per cent among daily users. Privacy (62%), account security (59%) and fear of AI making mistakes (49%) are the primary reasons full autonomy currently remains off the table.

Despite the breadth of adoption, AI capability is not yet a primary hardware purchase driver. Only one in three Australians say their next smartphone or computer must include advanced AI features. Fundamental device attributes such as battery life and performance remain the dominant purchasing considerations, reflecting the market currently dominated by cloud-based AI services.

Two in five AI users (41%) are interested in devices from AI-native companies such as OpenAI, Anthropic or xAI, rising to 66 per cent among daily users - marking an early appetite for purpose-built AI hardware. Around one in ten are already running AI agents on a dedicated device, and among those who chose a computer for this purpose, more than 40 per cent opted for Apple silicon, a share considerably above Mac's overall market share in Australian households.

"Despite the anticipation around AI-native hardware, existing form factors like smartphones and wearables are where mass AI adoption will happen," says Telsyte Senior Analyst Alvin Lee.

Cost-of-living crunch meets AI boom as 8 million gig workers work smarter

The study found the gig and sharing economy market has grown 65 per cent from 2024 to nearly 8 million Australians in 2026, at a time when 58 per cent of Australians say they feel more financially stretched than a year ago.

The growth is more concentrated in content creation and software programming, two areas where AI tools have materially lowered the barrier to entry and expanded individual output capacity.

AI is also playing a central role in how this workforce operates. The study found 75 per cent of gig and independent workers use AI tools at least weekly, well above the 66 per cent average across the broader user population.

Three in five (61%) say AI has enabled them to accomplish tasks previously beyond their reach, a result Telsyte regards as evidence of AI's role as a genuine enabler of economic participation for this segment.

Telsyte notes, however, that two-thirds of gig workers describe these earnings as supplementary rather than primary income, a distinction that is important context when assessing AI's net impact on household financial security.

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 Artificial Intelligence Study 2026 is a comprehensive study which provides subscribers with:

The state of the Australian Artificial Intelligence market, including adoption trends across standalone AI services and device-integrated AI
Uptake, intention and detailed analysis of leading AI services. Over 40 top services measured
Usage intensity analysis across daily, weekly and monthly users
Consumer attitudes toward AI advertising, data privacy and trust, and others in relation to AI
Analysis of AI search behaviour and its implications
Insights into agentic AI adoption, task delegation behaviour, personal data access preferences and appetite for AI-native hardware
The state of Australia’s gig and sharing economy market and participant trends

In preparing this study, Telsyte used:

An online survey conducted between April and May 2026 with a representative sample of 2,023 respondents, 16 years and older.
Interviews conducted with executives from hardware manufacturers and content providers.
Financial reports released by service providers and hardware manufacturers.
On-going monitoring of local and global market trends.

Editor’s note:

Telsyte’s measure of AI adoption include dedicated services and AI features integrated directly into devices. Device-integrated AI refer to artificial intelligence capabilities built directly into consumer devices. Examples include Apple Intelligence, Samsung Galaxy AI, Gemini on Google Pixel devices, Moto AI and Oppo AI.
Apple has officially opened Apple CarPlay to third-party conversational AI assistants with its iOS 26.4 release, with ChatGPT and Perplexity already available and others expected to follow. Google's Gemini is already integrated into Android Auto, while Grok is available in newer Tesla models.
Examples of proactive and anticipatory on-device AI features include recognising a friend's message about holiday photos and opening the camera roll directly, or nudging a user toward the calendar while composing a meeting note, consolidate notifications, messages, emails, travel bookings and personal habits into proactive daily briefs. Example of more advanced agentic features such as: a prompt to "book a taxi to the airport" sees AI open the app, fill the details and present the confirmation for a single tap of approval.
Gig and sharing economy work is defined by Telsyte as income-generating activities outside traditional employment, spanning platform-based gig work, freelancing, digital content creation, small business activity and asset-sharing income. This market represents individuals leveraging digital platforms, skills or assets for flexible income generation.

About Telsyte

Australians double-down on subscription video as budgets grow to fund more services

October 8, 2025

Creator economy reaches scale as competition for viewing time intensifies

SYDNEY, AUSTRALIA – Despite housing and cost of living pressures, Australia’s subscription entertainment market grew by 5 per cent to nearly 54.6 million services in the 12 months to June 2025, according to new research from the Australian emerging technology analyst firm, Telsyte.

The Telsyte Australian Subscription Entertainment Study 2025 found Australians are holding onto on-demand entertainment, with 47 per cent of SVOD users calling their service “non-negotiable”, 44 per cent of music streamers saying it is essential, and 63 per cent of committed gamers who play more than three hours a day calling games “must-have”.

The study found even with a maturing market, growth continues across the three main categories of SVOD (5%); streaming music (6%); and games-related subscriptions (7%). Telsyte excluded Optus Sport from its June 2025 reporting given the imminent closure and the ongoing subscriber transition to Stan Sport.

Increasing access options and deals boost SVOD market

More affordable ad-supported plans, paid sharing (extra member) programs, deals and cross-sector bundles and the launch of HBO Max combined to grow the total number of Subscription Video on Demand (SVOD) services to 26.6 million by June 2025, up 5 per cent year-on-year.

The market leaders remained consistent with Netflix (6.4 million subscriptions) holding the top position, followed by Amazon Prime Video (5.1 million), Disney+ (3.3 million), Stan (2.6 million), Paramount+ (2.1 million), Kayo Sports (1.7 million) and Binge (1.6 million). Paramount+ was the fastest growing major service in FY2025.

Momentum also came from the long tail of other services with fewer than one million subscriptions, fuelled by new entrant HBO Max combined with consumer interest in diversified content and strong appetite for sport.

HBO Max reached the top 10 within just three months of launch, while beIN Sports and Crunchyroll posted the fastest growth spurred on by bundling, and rising anime popularity (Apple TV+ and BritBox also featured in the top 10).

Active subscription management rises as households stretch entertainment budget

The study found Australians are spending more to support multiple subscriptions. Among those willing to pay for streaming video, the average monthly budget jumped 18 per cent (+$6.30) to nearly $42, outpacing the average 13 per cent rise in plan prices from the top 10 services as of September 2025.

About a quarter of subscribers claim they frequently exceed their budget, with subscribing households now carrying 3.3 services on average.

Telsyte Managing Director Foad Fadaghi says SVOD is now an active channel for competitive deals and cross promotions with telecom, utilities, food delivery and financial services.

“Households aren’t walking away from streaming, they are reprioritising and keeping their multi-service setups affordable,” Fadaghi says.

The study found about one in four SVOD subscribers reported encountering such deals in the past year, and most acted on them: on average securing three months of benefits at an average 36 per cent discount.

However, cost-of-living pressures remain evident as value-seeking behaviours intensify, with nearly two-thirds (63%) of Australians report expenses rising faster than income, and 46 per cent SVOD users rotate services more often than last year to manage costs.

Around half the SVOD subscribers say they actively hunt discounts or subscribe for specific titles then cancel afterwards. As a result, the research found exclusive content and frictionless sign-ups are becoming more important than sheer catalogue size when subscribers choose a service.

Ad-supported SVOD subscriptions more than doubled from 2.5 million to 6.4 million, led by Amazon Prime Video’s shift to ads in July 2024, with Netflix, Binge, HBO and Paramount+ also gaining traction as consumers embrace lower-cost access.

Despite the closure of Optus Sport, sport is a growing differentiator for SVOD services. Among Australia’s top SVOD services (excluding dedicated sport services such as Kayo), around one in five subscribers now cite sport as a key sign-up reason.

Consumers also want sport to stay accessible, with 2 in 3 believing access to free sports via free streaming services such as BVOD should be guaranteed for Australians, mirroring existing protections for free-to-air TV.

Local content remains highly valued and the study revealed more SVOD subscribers have seen Australian-related programming than other content. More than half (58%) of subscribers say it is important to have content that represents Australian stories, voices, culture, and values on SVOD services.

Ad-supported and creator-driven video shape the broader entertainment landscape

Telsyte found average weekly video consumption rose by four hours to more than 51 hours, driven by social media, YouTube and free and ad-supported streaming TV (FAST) services.

FAST services are now reaching 2.3 million Australians, growing over 40 per cent from a year ago, led by Samsung TV Plus and followed by LG Channels. FAST’s scheduled, linear-style channels are tapping into Australian’s enduring preference for live viewing, as nearly half of video viewing time is still live (vs. on demand).

Broadcasting Video On Demand (BVOD) services remain popular, exceeding 12 million viewers across 7Plus, 9Now, 10Play, ABC iView and SBS On Demand during FY2025. These apps also feature highly in mobile App Store ranks.

Social media video platforms such as YouTube and TikTok continue to attract mass audiences, with 17 million Australians watching YouTube and 52 per cent doing so daily. Casual and creator-led videos are the big drawcard, feeding into the fast-growing creator economy.

Telsyte estimates the direct-to-creator subscription market is now worth around half a billion ($500 million) annually (excluding adult content and advertising/revenue sharing), as Australians pay to support individual creators on creator-led platforms such as social media, YouTube, Twitch, Patreon and Substack.

Beyond entertainment, three in five subscribers say individual creators deliver insider knowledge and expert insights they cannot get from mainstream sources.

With podcasts an established part of Australians’ digital media libraries, around 9 million people listening to or watching them. The video format is taking off with 6.6 million Australians now watching video podcasts (vodcasts).

This shift reflects the gravitational pull of creator content and more engaging formats. YouTube and Spotify are the current leading podcast platforms. Telsyte expects SVOD and other services to extend into the social media creator world, to reach new audiences.

"There is a shift from platform to affinity discovery, fans now follow creators across formats ," says Telsyte Senior Analyst Alvin Lee.

Streaming music subscriptions growing steadily

Streaming music reached 19 million subscriptions at the end of June 2025, an increase of 6 per cent from previous year supported by population growth and bundled access.

Australia’s top streaming music providers remain Spotify, Google (incl. YouTube Music and YouTube Premium listeners for music) and Apple Music. Amazon Music listenership continues on the rise as more utilising the service as part of the Amazon Prime subscription.

Games-related subscriptions grow as cloud gaming momentum builds

Australians held 9.7 million games-related subscriptions at the end of June 2025, up 7 per cent year-on-year as most services expanded alongside a revitalised console cycle, energised by the Nintendo Switch 2 launch and increasing popularity of handheld consoles.

Microsoft’s Xbox Game Pass remains the leader across Telsyte-tracked games-related subscriptions as consumers embrace the play-anywhere, anytime subscription model.

Interest in cloud gaming remains high, with over one million Australians using services such as Microsoft’s Xbox Cloud Gaming and GeForce Now. Telsyte expects stronger uplift in the coming years as Xbox Cloud Gaming exits beta and expand across more plan tiers and devices, as well as potential local availability of Amazon Luna - Amazon’s cloud gaming platform, included with Prime in some markets.

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 Subscription Entertainment Study 2025 is a comprehensive study which provides subscribers with:

Market sizing and forecasts of the Australian entertainment subscriptions market, including video, music and games
Insights into consumer attitudes and technology adoption trends
Uptake, intention and detailed analysis of

Video services including: SVOD, pay TV and BVOD services
Streaming music services
Games-related subscription services

Service and content consumption preferences
Insights into the future of entertainment subscription services in Australia.

In preparing this study, Telsyte used:

An online survey conducted in August 2025 with a representative sample of 1,025 respondents, 16 years and older.
An online survey conducted in July 2025 with a representative sample of 1,001 respondents, 16 years and older.
Interviews conducted with executives from SVOD, Pay TV and video game service providers, content providers, funding agencies and hardware manufacturers.
Financial reports released by service providers and media companies.
On-going monitoring of local and global market trends.

Editor’s note:

Although Optus Sport officially ceased operations in August 2025, Telsyte excluded the service from its June 2025 reporting given the imminent closure and the ongoing subscriber transition to Stan Sport to avoid potentially inflating the market. Excluding the impact of Optus Sport, Telsyte estimates the SVOD market would have grown by around 7 per cent.
Telsyte reports Stan at 2.6 million in June 2025, include non-paying subscriptions. Nine’s reporting shows 2.5 million paid subscriptions, up 0.2 million year-on-year.
Telsyte actively monitors the SVOD services market, including over 40 SVOD services. Other examples include Apple TV+, BritBox, beIN Sports, Crunchyroll, Foxtel Now, Hayu, HBO Max NBA League Pass and etc.
The measure is the number of subscriptions at the end of June 2025 (snapshot), not usage/utilisation. Content releases will influence the number of subscriptions when measured at different points in time.
Telsyte measures Amazon Prime Video as a subset of Amazon Prime – with measured subscribers self-reporting their use of the video service.
Telsyte measures the hours that consumers spend on consuming all types of video content. Examples include FTA TV, SVOD, social media videos, BVOD, FAST services etc.
Examples of FAST services include Samsung TV Plus, LG Channels and Plex. FAST channels are curated scheduled channels that feature specific programs, genres or themes and offer an improved viewing experience of linear TV channels (e.g. a channel that is dedicated to ‘MasterChef’ or ‘shows from the 70s’). FAST channels can also be found on BVOD services such as 7Plus, 10Play, and platforms/services like Fetch and Binge).
The direct-to-creator subscription revenue figure excludes adult content and accounts only for subscription-based revenue, not advertising or platform partner program payouts.

About Telsyte

Australia’s smart home market set to crack $2.5B, driven by AI, energy savings and security

March 20, 2024

Despite recent economic headwinds, Australians still interested in smart home tech with 7.6 million households now having at least one smart home product

SYDNEY, AUSTRALIA – Despite recent economic headwinds, Australians still interested in smart home technologies with 7.6 million households now having adopted at least one smart home product, with nearly 24 connected devices per home as of 2023, according to new research from the Australian emerging technology analyst firm, Telsyte.

The Telsyte Australian Smart Home Market Study 2023 found that Australia’s smart home market is set to crack $2.5 billion in revenue, driven by demand for energy efficiency, security, price increases, and the anticipation of the smart home concept greatly benefit from the technological advancements in generative AI.

Smart homes becoming mainstream even with the cost

As more electrical devices arrive on the market with computer “smarts”, Australian consumers now have more choice to make their home smart, but must continue to balance the opportunity with the costs.

Almost half (48%) of invested adopters (consumers adopted 5 or more types of smart home devices) say the current smart home offerings are not yet ‘smart’ enough, according to the study.

Telsyte’s research found in 2023 cost of living pressures outweighed the benefits of a smarter home with over half (59%) under increasing financial pressure and less looking to adopt energy optimising solution for their home to combat rising energy costs.

However, the overall trend remains clear: Cost of living pressures will not stop the transition to smarter homes and nearly a third of households now have five or more smart devices.

Robots, EVs and renewables ramp up the smart home

Smart appliance vendors are now committed to enabling ‘connected’ living with aircon, washing machines and fridges taking the lead among appliances consumers see as important to be ‘smart’.

The study found nearly one in five (18%) households have a vacuum robot with more general-purpose robots on the way. iRobot is still the leading brand of vacuum robot despite increased competition.

Surging energy prices continues to add pressure to household budgets with 74 per cent of Australians seeing their electricity bills increase in 2023; however, a sustainable home is still important to Australians during turbulent economic times.

In addition to cost savings and better energy efficiency, the study found 28 per cent of households want to reduce environmental impact with smart energy solutions and more are considering smart batteries for a complete solar solution.

More than half (61%) of solar owners have expressed interested in joining a Virtual Power Plan (VPP) program to help the environment and support their communities.

In the garage, high fuel prices tipping over new car buyers to EVs. Tesla still leads in sales, but EV models priced closely aligned to buyers’ expectations are proven popular.

Telsyte expects demand for home EV chargers set to rise with continued shortages in public spaces.

In-home AI begins to take hold

The past 12 months has seen a lot of hype around generative AI and services like ChatGPT, and Telsyte found device product marketing is shifting from ‘connected home’ to AI-enabled smart living.

“Australians will increasingly look for AI-powered smart living solutions that offer convenience, personalisation, and enhanced functionality,” Telsyte Managing Director, Foad Fadaghi, says.

New Gen AI voice assistants bring superior cognitive understanding of user intentions with advanced natural language processing, and 60 per cent of consumers believe AI can manage a smart home better than themselves. In addition, 43 per cent of people are keen on a smart home with advanced AI capabilities that enable seamless natural language communication and automate complex tasks.

The study found there were an average of 23.8 connected devices in the home in 2023 with 16.1 non-smart devices, 7.1 smart home devices and 0.5 provisioning devices (e.g. modems).

The average number of Internet-connected devices in the home is expected to grow by nearly 10 in the next 4 years and the average number of smart home devices set to grow by nearly half by 2027, equivalent to more than 353 million Internet-connected devices in total.

Telsyte forecasts the smart home market to be worth over $5 billion by 2027 with high value smart home products such as smart batteries, smart appliances and services to drive smart home market value. Smart appliances could make up around a third of all appliance revenue by 2027.

While smart speaker adoption is stagnating, AI-powered experiences are poised to set off the next adoption wave. Google is adding generative AI capability to its Google Nest smart speakers, which are already the main smart speaker for over half of user households.

How will all these AI-powered, connected devices interact? The emerging Matter standard poised to help unify disparate ecosystem.

A joint effort of more than 120 companies, including Google, Apple, Amazon, and Samsung, Matter is a smart home protocol aimed at unifying industry standards and allowing devices with different communication protocols across multiple platforms to communicate with each other.

Smart spaces hot with hybrid work here to stay

Being able to work from home or the office thanks to the pandemic has had a measurable impact on the spaces Australians are looking to improve, with the living room and study now the top smart spaces.

The lounge room, study and front entrance are the spaces where internet-connected devices were installed most in 2023, with the gaming room rising fast.

The study found more than a million (1.2M or 12%) Australian homes now have a dedicated workspace and another 500,000 (5%) households are interested in setting up a space dedicated to their hobbies and DIY.

Connectivity and convenience have joined security and energy efficiency as the top reasons for improving spaces in 2023 and Telsyte forecasts more investments will be made making the home office smarter.

Security and home care putting smart devices to work

In a positive step for the smart home trend, smart security surveillance and smart home care are putting smart devices to work helping with disability and aged care, and not just entertaining people.

Telsyte found 1.6 million (16%) households claim they have seniors or members with a disability that require special assistance or care, and among those households 1 in 3 (32%) are seeking additional help looking after these household members.

A further 37 per cent believe they will significantly benefit from the support provided by voice commands and more intelligent smart assistants.

This signals a new opportunity to implement assistive smart home tech in NDIS households.

The study also found 31 per cent of households have security surveillance systems, and self-monitored online security systems are on the rise with about half of the installed base.

Smart video cameras remained popular in 2023 with increased availability of AI features and more affordable products with the market now worth over $330 million.

Telsyte also found more people are acquiring security cameras from hardware stores and electricians, and more are relying on professional installation for smart security devices leading to boost in mixed mode installations.

Subscriptions are gaining some appeal as appliances get smarter

With most appliance vendors committed to enabling ‘connected’ living and aircon, washing machines and fridges are taking the lead among appliances consumers see as important to be ‘smart’. Smart lightbulb adoption has slowed during the economic downturn, but is expected to grow with more competitively priced units.

To pay for it all, the study found Australians remain moderately interested (16%) in hardware subscription services, but more potential adopters are interested in this model.

Those interested are willing to pay from $26 to $44 per month for each service. Home automation services, utility and insurance providers increasingly considered for subscription services.

The taxonomy of Telsyte's Australian Smart Home Market Study 2023:

IoT@Home segments covered:

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 Smart Home Market Study 2023 is a comprehensive study which provides subscribers with:

Market sizing and forecasts of the Australian smart home market by detailed segments including services and installation revenues
Insights into consumer attitudes and technology adoption trends
Analysis of vendor strategies and key growth segments
Smart home user profiles, including adopters, those on the verge of adopting and those not yet to be interested.
Analysis of the smart home ecosystems
Analysis of retail and online channels and their importance to smart home products
Insights into where consumers begin with smart home journey and key market drivers expected to drive rapid adoption in different segments.

In preparing this study, Telsyte used:

An online survey conducted in August 2023 with a representative sample of 1,109 respondents, 16 years and older.
An online survey conducted in December 2022 with a representative sample of 1,036 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 and manufacturers.
On-going monitoring of local and global market and vendor trends.

Editor’s note:

About Telsyte

Generative AI fuels Australia's booming IaaS market

March 5, 2024

Hyperscalers continue to dominate

SYDNEY, AUSTRALIA – Cloud applications and generative AI are the key drivers of Australia's soaring Infrastructure as a Service (IaaS) market, a new report from Telsyte, an Australian emerging technology analyst firm, reveals.

The report, titled Telsyte Australian Hyperscale Cloud Market Study 2024, shows that Australian organisations spent $4.4 billion on cloud infrastructure in 2023, a remarkable 25 per cent increase from the previous year.

The report also highlights the continued dominance of hyperscaler cloud providers, which accounted for an estimated 90 per cent of the IaaS market in 2023.

Telsyte predicts that the total IaaS market in Australia will reach $8B in revenue by 2027, propelled by growing cloud spending. Nearly half (40%) of Australian organisations plan to boost their cloud spending by 20 to 70 per cent in 2024.

Microsoft, through its partnership with OpenAI, is the leading Generation AI technology provider in Australia, with a solid presence in cloud services and productivity tools.

Generative AI, which can create novel content such as text, images, code, and music, is mainly delivered as a cloud service and fits well with most cloud applications. Natural language processing, code generation and reviews, and other use cases can be powered by cloud services.

Telsyte's research also shows that improved data analysis and insights are the top benefits that organisations expect from Gen AI.

In 2023, more than half (55%) of Australian organisations had already tried or implemented some form of Generative AI.

Cloud adoption high, but not yet mature

Cloud adoption and spending are high, but Australian IT leaders still face security and governance issues.

The study finds that cloud demand is high, with three out of four organisations considering private and public options, and only one in ten using public cloud services for less than two years.

Telsyte's cloud maturity index indicates that most of the market (71%) is shifting to more production workloads in the cloud, following the initial adoption phase.

A key finding of the study is that business units are now pushing for cloud adoption for their workloads. This is the main driver of cloud adoption, as business units do not want to wait for in-house IT to provide the infrastructure they need.

Cloud benefits such as access to new technologies and faster time to market are among the top five reasons for adoption.

Cloud challenges persist

Cloud is bringing many operational advantages to Australian organisations, but Telsyte research finds that almost all (97%) have at least one challenge with cloud.

The biggest challenges are "shadow" cloud, where business units buy cloud services without IT oversight; security; cost; and lock-in.

There is an opportunity for cloud consolidation, as two-thirds of Australian organisations use two to three different clouds, and a high 27 per cent use four to seven.

"Australian organisations have been early adopters of cloud, but in 2024 we expect to see more improvements in how cloud is used, with more maturity, more app development, and more focus on consolidation," says Telsyte Managing Director, Foad Fadaghi.

Cloud native apps gaining traction

The study shows that virtual servers are the most common IaaS application, but new areas such as serverless compute and storage are gaining popularity.

Infrastructure-as-Code (IaC), or deploying cloud infrastructure with code-level consistency and automation, is attracting high interest.

"The public clouds have enabled a new era of service automation for Australian enterprises, and there is a range of tools in use or being tested for Infrastructure-as-Code," Fadaghi says.

IaC is expected to be crucial for Generative AI deployments.

Hybrid cloud here to stay, skills needed

Telsyte's hybrid cloud research has been tracking adoption for eight years and shows that hybrid cloud is now mainstream in Australia, with eight in 10 organisations either testing or using it. Only 8 per cent have no plans for hybrid.

The preferred hybrid architecture is mainly cloud to on-premises, with cloud "bursting" also in use.

Telsyte's study also finds that there is a skills gap in Australia, with cloud networking skills in high demand and traditional database and security skills lacking in cloud.

For further information on the study or media enquiries contact:

Alvin Lee
Senior Analyst
Tel: 1800 313 142
Email: alee@telsyte.com.au

Foad Fadaghi
Managing Director
Tel: 1800 313 142
Email: ffadaghi@telsyte.com.au

The Telsyte Australian Hyperscale Cloud Market Study 2024 is a comprehensive study which provides subscribers with:

Market sizing and forecasts of the Australian cloud infrastructure services market
Analysis of market share and hyperscale performance
End-user trends in cloud computing
Strategic analysis of market opportunities for cloud infrastructure and MSPs

Telsyte’s study also includes profiles of the leading cloud vendors

Hyperscale profile: Amazon Web Services
Hyperscale profile: Google Cloud
Hyperscale profile: Microsoft Azure
Hyperscale profile: IBM Cloud
Hyperscale profile: Alibaba Cloud
Hyperscale profile: Oracle
Where VMware fits into the hyperscale clouds
Tier-2 clouds challenge hyperscalers: Telsyte forecast the rise of tier-2 clouds 3+ years ago. They offer low-cost scalability and growing range of hyperscaler features

In preparing this study, Telsyte used:

An online survey of 200 IT decision makers across Australian organisations with 20 or more employees. More than half of respondents were from large organisations (>200 employees)
Annual reports released by market participants
Interviews and discussions with cloud providers, third party service providers and carriers
On-going monitoring of local and global market trends

About Telsyte