SYDNEY, AUSTRALIA – New findings from Telsyte’s Australian Smartphone Market Study 2014-2018 show there were 16 million smartphone users in Australia at the end of June 2014, an increase of 1.1 million over the previous six months.

Both the Android and Apple platforms grew in the first half of this year and together make up 93 per cent of the installed base of users.

While the Australian smartphone market is maturing, some 20 per cent of mobile phone users are still on regular mobile phones. Telsyte expects strong sales in the second half of 2014, driven by new devices and shortening average replacement cycles.

Strong sales expected in the second half of 2014

Telsyte estimates that 5.6 million new smartphones will be sold in Australia during the second half of 2014. The majority of sales will be to existing smartphone users, however, Telsyte estimates around 1.5 million new users will take up smartphones before the end of 2014.

Telsyte Managing Director Foad Fadaghi says the Australian smartphone market is dynamic and still up for grabs.

“Roughly a third of those intending to buy a new smartphone in the second half of 2014 have not decided on the platform they intend to purchase and around a third intend to switch platforms,” Fadaghi says.

Apple retains the highest repeat purchase intentions (70%) while Android has improved to over 60 per cent, closing the gap. Telsyte found Windows Phone 8 uptake remained steady as the lack of handset and brand options impacted faster adoption.

Phablets – or smartphones that Telsyte defines as having a screen size of 5.5 to 6.9 inches – are still a niche market, despite more manufacturers releasing larger-screen devices that blur the line between a smartphone and tablet.

Telsyte believes the phablet market hinges on the entrance of Apple which is expected to launch a 5.5 inch iPhone 6 later this year.

iPhone 6 “phablet” appeals to Australians

Telsyte believes a larger screen iPhone will be a strong strategy if Apple decides to release such a device later this year, and could help it reclaim some lost market share in Australia.

“Some 40 per cent of survey respondents that intend to purchase an iPhone 6 indicated they would only consider it if it has a larger screen,” Fadaghi says.

Telsyte research shows that one in five existing Android users that intend to purchase a new smartphone and are not planning to purchase an iPhone, indicated they would “change their smartphone purchasing decision” if a larger screen iPhone 6 became available.

However it’s not all one way traffic. Telsyte also found that around 10 per cent of those expecting to purchase an Android smartphone are currently using an iPhone.

Furthermore, Telsyte research shows that Android smartphones have now overtaken iPhones as the main devices purchased on contract from carriers, following strong carrier promotions and the reduction in iPhone subsidies.

Smartwatches and fitness bands abound

Telsyte has found that smartwatch adoption is still embryonic in Australia and 80 per cent of smartwatch users pair their devices with Android smartphones. Samsung is the market leader, although the product category might be accelerated with the arrival of an Apple “iWatch” in 2014.

Telsyte research shows that smart fitness bands are more popular than smartwatches. This is due to their lower price points and popularity as a gift. Fitbit is the market leader and only a third of fitness band users currently pairing them with iPhones.

More than 1 million smart watches and fitness bands (combined) have been sold in Australia according to Telsyte research.

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director & Principal Analyst
Tel: +612 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

About Telsyte’s Australian Smartphone Market Study 2014-2018

The Telsyte Australian Smartphone Market Study 2014 is a comprehensive study which provides subscribers with:

Smartphone market sizing, platform and vendor market shares and forecasts
End user trends across devices, services and mobile media
Purchase intentions
Discussions on strategic issues including platform and manufacturer trends
Product reviews and insights

In preparing this study, Telsyte used:

Financial reports released by mobile carriers, manufacturers and service providers.
Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,018 respondents.
On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. 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/non commercial purpose, except for news reporting, comment, criticism, teaching or scholarship.

Third Edition of Digital Nation book reveals Australians’ changing technology habits at home and work

Telsyte is pleased to announce the release of Digital Nation, an infographic style study book that showcases Telsyte’s leading local consumer and enterprise ICT research.

Digital Nation combines primary research with analyst insight to tell a unique story about how technology is impacting Australians in 2014 and what to expect in the future.

The book gives readers information on how to prepare for digital disruption and technology-led change and provides strategic insight into how the explosion of devices and data will drive new levels of engagement and commerce.

Australians digital lives revealed

Telsyte Managing Director Foad Fadaghi says Australians are increasingly comfortable using and adapting to new technologies.

“Staying connected is now a national pastime – Australians are clearly more dependent on the internet for entertainment and shopping than ever before,” Fadaghi says.

Telsyte research shows more than half the population regularly use Facebook and 58 per cent of Australians regularly use at least one other device while watching Television. Telsyte has found that the average household has nearly 8 connected devices and over a third download 100 GB per month or more via their fixed broadband connections.

Australians are increasingly turning to “post-PC” devices like smartphones and tablets for their personal information management and as a result are increasingly shifting their habits, including entertainment from desktop computers to handheld devices.

Our post-PC activities are not limited to viewing with more of us using smart devices for shopping. In 2013 nearly a third (29%) of people using a smartphone purchased a physical good with their device, with the figure even higher (43%) for tablet owners.

Australians are increasingly comfortable purchasing goods online. This new found comfort has manifested itself in over $20bn spent on eCommerce across 19 consumer categories as measured by Telsyte. Nearly a two-thirds of consumers surveyed indicated they had saved money by buying items online in 2013.

Digital Nation prepares business leaders to take advantage of all this change and how to transform their thinking to avoid being left behind.

This year we will also see how the change of government will impact National Broadband Network coverage, with the immediate decision to create a hybrid network of fibre, copper and satellite. Digital Nation reveals Australians are hungry for faster broadband with most of us willing to upgrade to a faster service when it becomes available.

Digital advancement at work

An exciting development for the third edition of Digital Nation is the introduction of a new business section titled Digital at Work.

As more of our personal technology is used for business with BYO-IT (not just devices, but apps too) and more business applications become accessible to consumers, Australians are in the middle of a work-life balance revolution. Digital Nation looks at how the workplace is transforming to be more accommodating – and productive – for our increasingly technology-enabled workforce.

This phenomenon of by-passing IT is not confined to individuals, as non-IT business units within organisations are increasingly likely to procure IT services, mostly from the cloud, to meet their needs. This is known as “shadow IT” and, like BYO-IT, can help or hinder an organisation managing its information effectively.

Within local organisations, around half of business units like HR, marketing and operations have their own IT budgets. Digital Nation reveals this trend is having a measurable impact on traditional IT departments with 18% of organisations increasing their IT spend believe it is due to non-IT business units buying IT and, more poignantly, a third of CIOs have experienced problems resulting from IT purchasing outside of the IT department.

Telsyte Senior Analyst Rodney Gedda says use of personal device technology in the workplace is now very pervasive with nearly 45 per cent of Australian organisations with more than 20 employees allowing BYOD.

“However, a further 24 per cent of CIOs acknowledge that staff go ahead and do it anyway without permission indicating a strong desire by people to use their own technology for work – inside or outside the office,” Gedda says.

Smartphones (94%) and tablets (85%) are the leading types of personal devices in use for work and sales and marketing and senior management are the leading roles adopting BYOD.

Cloud computing for business continues to grow strongly and Digital Nation reveals the applications most likely to be delivered through the cloud – from e-commerce to project management.

“The cloud is now a mainstream delivery model and presents a real option for local enterprises used to on-premise IT management,” Gedda says, adding important factors like security, integration and TCO do not go away with moving on-premise systems and applications to the cloud.

The combination of smart devices, cloud services and faster networks has led to a rise in remote working with more than 40 per cent of organisations having staff that work from home at least one day per week. Furthermore, 20 per cent of employees work from home at least one day per week within organisations that allow teleworking. Digital Nation also looks at where teleworking is headed and how organisations can improve collaboration with “hot desking” and activity-based environments.

With all the talk about wearable computers for consumers, the business applications of wearables are also exciting and more mature than people realise. Digital Nation reveals how Australian organisations in manufacturing, health and other industries are already using wearable computers and where the technology is headed.

“Smart devices, including wearable computers, generate massive volumes of data which can then be used for business intelligence,” Gedda says. “In the third edition of Digital Nation, we look at how Australian organisations are using big data and what their future plans are.”

The 50 page Digital Nation book covers:

Attitudes to technology
Post PC adoption trends
Smartphones: Android, iOS and other platform trends
Google glass: eyes-down experience searching for an eyes-up solution
Second screens: multitasking while watching TV
Australian e-commerce market
Mobile commerce and app store spend
High-speed broadband and online privacy
Business technology spending branches outside of IT
Bring your own IT
Business looks to clouds for future of IT
Free productivity: remote working
Wearing technology into work
Collaboration challenges business meetings
Business data goes big

Digital Nation, is available for purchase as a printed hardcover book from online bookstore Blurb (US$99+GST excluding delivery) via this URL: http://blur.by/1tXGEdY

Customised books and bulk orders are also available. Contact: info@telsyte.com.au

For further information on the book or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

Rodney Gedda
Senior Analyst
Tel: +612 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

About Telsyte