Australia Smartphones Market Size, Share, Growth Analysis Report and Forecast Trends 2024-2032

Australia Smartphones Market Trends

Rapid technological advancements in mobile connectivity are expected to drive the Australia smartphones market development. Major telecommunications companies like Telstra in Australia provide network connections to nearly 98.8% of the Australian population. However, this covers only 30% of the Australian landmass, highlighting a significant problem for people communicating across different states while travelling. As a large number of telcos are establishing partnerships with low earth orbit satellite companies, they are expected to increase the coverage of advanced 5G networks. This can enable smart sensors and devices with long battery life to automatically connect to the internet and ease the overall process of communication. Thus, the introduction of advanced 5G smartphones is expected to drive the market growth.

Generative AI is expected to revolutionise the Australia smartphones market landscape in the coming years. These tools can automate certain mobile functions, including the generation of emails and new messages by choosing unique conversational tones such as “concise”, “friendly,” or “professional”. They can facilitate not only cloud-based search but also on-device search by offering consumers the exact location of different files and folders. Generative AI can also be used to prepare bulleted points from digital conversations, which can simplify working in professional settings.

Australia Smartphones Market Growth

Continuous improvements in mobile technology in the Australia smartphones market have led to the introduction of eSIMs, which are directly built into the internal framework of mobile devices. They enable users to transition between different network service providers to find the one that best suits them. They are also extremely durable and eco-friendly, which reduces the risk of damage by external agents while minimising the environmental impact of plastic SIMs.

Nearly 94% of all internet users in Australia rely on their smartphones for accessing the world wide web. Nearly 97% of all young people in Australia use the internet on their mobile devices. Nearly 78% of all youngsters use only mobiles for receiving voice calls at home. Nearly 61% of all young people in Australia use mobile applications for either audio/video calling, or chatting. This is expected to increase the reliance on smartphones, thereby driving the Australia smartphones market expansion.

Australia Smartphones Market Insights

• By 2028, 5G mobile subscriptions are expected to reach 5 billion people in Australia.
• An average Australian spends 6.8 hours daily on the internet.
• Nearly 20% of all smartphone users in Australia access the internet over 15 times daily.

Industry News

December 2023

Apple Inc. retained its dominant position in the Australian market for smartphones while accounting for over 50% of the market share. It was closely followed by Samsung and OPPO during Q3 of FY-2023.

August 2024

Xiaomi announced the launch of its POCO F6 series in Australia, offering high-performance technology at competitive prices. The series is fully compatible with Australian 4G and 5G networks and offers a two-year warranty, targeting tech-users, budget-conscious customers, and photography enthusiasts.

Market Drivers

Shift towards edge AI-Processing

As AI processors in smartphones become more powerful, they are expected to perform computational work on smartphones instead of remote servers, thereby improving response times and ensuring a smoother user experience while generating images, texts, and translations. This is also expected to enhance user privacy and reduce the risk of data breaches, which can cause huge reputational risk to smartphone companies. Moreover, advancements in edge AI processing can lead to improvements in augmented reality and virtual reality tools on smartphones, thereby enhancing the demand for smartphones in Australia. Moreover, the development of advanced microprocessors is expected to enhance the energy efficiency of AI-smartphones in the forecast period.

Increasing focus on tracking physical fitness

The Australia smartphones market development can be attributed to the proliferation of health and fitness apps that have enabled consumers to monitor their dietary intake and overall physical health at the touch of a button. In 2020, nearly 39% of all Australians used digital platforms to monitor their exercise levels, which is expected to sustain over time. This can be attributed to the increasing convenience and cost-effectiveness of mobile phones for tracking important health metrics, given their accessibility and affordability. In 2024, Australia became one of the world’s top 15 regions ranked by the number of health and fitness app users, with the total number of downloads reaching 24,979,426.

Opportunities in the Australia Smartphones Market

Growing demand for sustainable smartphones

A significant opportunity in the Australia smartphones market lies in the rise of eco-friendly and sustainable smartphones. With growing consumer awareness about environmental issues, there is an increasing demand for smartphones made from recycled materials, energy-efficient designs, and devices that offer longer lifecycles. Brands that focus on sustainability, such as using biodegradable materials, offering easy repairability, or creating recycling programs for old devices, can tap into this emerging market segment.

This trend aligns with Australia's broader push towards sustainability across industries, as both consumers and government policies increasingly favour eco-friendly products. Smartphone manufacturers that prioritise sustainability can not only differentiate themselves from competitors but also appeal to a growing base of environmentally conscious consumers.

Market Dynamics

The market is being driven by a shift towards 5G-enabled devices, fuelled by the country's expanding 5G infrastructure. Consumers are increasingly seeking smartphones with superior connectivity, faster speeds, and enhanced functionality. At the same time, a rising focus on sustainability is influencing consumer choices, with preferences for devices made from eco-friendly materials and offering extended lifecycles. Competitive pricing and installment payment options are also shaping the market dynamics, as brands strive to attract both premium and budget-conscious consumers. Moreover, technological innovations like AI integration, advanced security features, and AR applications are playing a crucial role in shaping the Australia smartphones market trends and dynamics.

Market Restraints

The Australia smartphones market faces restraints such as market saturation, with high smartphone penetration limiting growth opportunities. Additionally, the rising costs of premium smartphones may deter price-sensitive consumers. Supply chain disruptions and environmental concerns over e-waste also pose challenges for manufacturers seeking to maintain sustainable growth.

Australia Smartphones Industry Segmentation

“Australia Smartphones Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Operating System

• Android
• iOS
• Windows
• Others

Market Breakup by Display Technology

• OLED Technology
• LCD Technology

Market Breakup by RAM Capacity

• Below 4GB
• 4GB - 8GB
• Over 8GB

Market Breakup by Price Range

• Ultra-Low-End (Less Than $100)
• Low-End ($100-<$200)
• Mid-Range ($200-<$400)
• Mid- to High-End ($400-<$600)
• High-End ($600-<$800)
• Premium ($800-<$1000)
• Ultra-Premium ($1000 and above)

Market Breakup by Distribution Channel

• Online Store
• OEMs
• Retailers
• E-Commerce

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Smartphones Market Share

By Operating System Analysis

Android smartphones are expected to grow at a CAGR of 2.2% between 2024 and 2032

As per the Australia smartphones market analysis, Android smartphones are expected to dominate the market landscape since they are affordable and can perform wide-ranging functions. They can rapidly execute assigned operations, which makes them an appealing choice for consumers. They also support 3D graphics, which is bolstering their adoption among video game enthusiasts, which is contributing to the market growth.

iOS is expected to constitute a major portion of the Australia smartphones market share, as consumers prefer the iPhone for its security features, apart from its ability to capture stunning pictures and integrate seamlessly with other devices.

Rapid technological advancements in the smartphone industry are expected to play a significant role in enhancing the demand for other operating systems, including Windows, thereby driving the market growth over the forecast period.

By Display Technology Analysis

OLED technology is expected to drive the Australia smartphones market growth

OLED technology is expected to dominate the Australia smartphones market due to its superior display, quality, energy efficiency, and flexibility. OLED displays offer deep blacks, high contrast ratios, and vibrant colours, which makes them ideal for high-end smartphones, which are in demand among tech-savvy Australian consumers. Additionally, OLED panels are thinner and more power-efficient, which aligns with the growing trend toward sleeker and more energy-conscious devices.

LCD technology is still expected to retain a significant portion of the Australia smartphones market share, particularly in budget and mid-range devices. While OLED dominates the premium segment, LCD's cost-effectiveness, durability, and adequate display quality make it a popular choice for consumers seeking affordable smartphones with reliable performance and decent visual experiences.

By Distribution Channel Analysis

Online stores are expected to lead the market growth in the forecast period

As per the Australia smartphones market analysis, online stores are gaining increasing popularity among consumers as they prefer the convenience of purchasing smartphones online. Brands and retailers leverage their websites and platforms like Amazon and eBay to reach a broader audience.

Original equipment manufacturers (OEMs) like Apple and Samsung sell directly through their branded stores and online platforms. This allows them to control the entire customer experience and maintain premium brand positioning.

Physical retail stores, including electronics chains like JB Hi-Fi and Harvey Norman, continue to play a vital role, offering in-store experiences and personalised services to buyers.

E-commerce platforms are growing rapidly, particularly for consumers seeking competitive pricing, discounts, and a wider product range. They provide convenience and often faster delivery options, contributing significantly to smartphone sales.

Australia Smartphones Market Regional Insights

The expansion of 5G network coverage across Australia is expected to promote the Australia smartphones market growth. Telstra, Optus, and Vodafone the three major mobile network operators in Australia deployed nearly 4,000 5G network sites across the country. As per the Australia Competition and Consumer Commission, New South Wales leads the national deployment of 5G networks (1,218), followed by Victoria (917), Queensland (835), South Australia (444), Western Australia (271), and Tasmania (138).

The Australia smartphones market analysis suggests that nearly 55% of all web surfers in Australia prefer mobile devices over desktops and laptops for internet browsing. Nearly 53% of all smartphone users in Australia connect to the internet over 5 times a day. This indicates the importance of round-the-clock connectivity for Australian consumers, which is driving the smartphones demand growth in the country.

During 2022-23, Australia registered a GDP growth of 3.0%, driven by robust economic recovery across most industries post the COVID-19 pandemic. The gross state product (GSP) of all major states recorded significant growth, such as the Australian Capital Territory (4.3%), South Australia (3.8%), New South Wales (3.7%), Western Australia (3.5%), Victoria (2.6%), Queensland (2.3%), and Tasmania (1.1%). This is expected to favourably shape the Australia smartphones market dynamics by enhancing consumers’ disposable incomes and promoting the demand for new models of smartphones.

Competitive Landscape

Major market players are engaged in integrating generative AI tools into their new smartphones to enhance the consumer appeal for their markets. This is expected to have a favourable impact on the Australia smartphones market growth.

Key Industry Players

Motorola Mobility LLC was founded in 1928 and is headquartered in Chicago, Illinois (USA). It is a part of Lenovo and is engaged in manufacturing computers and electronic items.

Huawei Technologies Co., Ltd was founded in 1987 and is headquartered in China. It is a leading provider of smart devices and ICT infrastructure. It operates in over 170 countries while serving over 3 billion people worldwide.

Apple Inc was founded in 1976 and is headquartered in California (USA). It is engaged in manufacturing a wide range of computers and electronic devices and is renowned for its range of tablets, laptops, and smartphones.

Samsung Electronics Australia Pty Limited is a part of Samsung Electronics, which was established in 1969. This branch is headquartered in Sydney and is engaged in producing a wide range of transformative products, including smartphones, LED solutions, tablets, digital appliances, and semiconductors, among others.

Other key players in the Australia smartphones market report include Cell8 Pty Limited, among others.

Recent Developments in Australia Smartphones Market

May 2024

TCL launched 40 NXTPAPER, its latest smartphone that provides unique full-colour and monochrome paper-like visuals in Australia. Its Electronic Paper Display reduces blue light and addresses concerns surrounding eye health by minimising glare. It has a 6.78-inch FHD+ display, a storage capacity of 256GB, 33W fast charging, and biometric locking features.

November 2023

Samsung Electronics Australia launched its latest smartphone Galaxy A05s in Australia. It comes with a high resolution 50 MP camera, along with a sleek 6.7-inch Infinity-U display with a 90 Hz refresh rate. It is powered by Qualcomm Snapdragon 680, which enhances its multitasking prowess.