Wednesday, 2 June 2021, 6:07 pmPress Release: IDC
The New Zealand (NZ) smartphone market rebounded sharply
from a year ago as it recorded its highest quarter of annual
growth since 2013Q4. According to the latest IDC
Asia/Pacific Quarterly Mobile Phone Tracker,
New Zealand smartphone shipments increased
30.1% YoY in the first quarter of 2021 to reach 319,000
units. This compares to 245,000 units in 2020Q1, as the
pandemic began to restrict the supply of shipments to NZ.
When measured against 2019s first quarter figure of
305,000 units, the result was also up 4%.
“As the
reliance on devices such as smartphones and PCs has grown
post-pandemic, consumers have naturally looked to upgrade
and refresh their devices at an increasing rate,” says Maxim
Wilson, Associate Market Analyst for the New Zealand Mobile
Devices Market. Kiwis continued to allocate their
discretionary spend to smartphones, in particular, flagship
models. This increased buying saw YoY revenue growth of 34%
in the first quarter of 2021, as the ultra-premium segment
(US$1000+) accounted for 30% of shipments in Q1.
Apple
and Samsung accounted for 84% of the smartphone market in
Q1, a record combined share in New Zealand. Premium models,
the iPhone 12 and Galaxy S21 (released in January 2021)
exceeded expectations, as Kiwi consumers flocked in numbers
to buy the new flagship devices. The supply of these models
also held up despite strong demand for the high-end
phones.
The
record combined market share from Apple and Samsung shows
the gap Huawei has left in the market, as the Chinese vendor
pivots away from smartphones. This has presented an
opportunity for other competitors, particularly in the
Android space. Motorola has introduced more competitive
smartphone offerings in the lower-end segment, as it seeks
to compete with Samsung and OPPO, while Vodafone has been
gaining share in the sub-NZ$150 price band. Xiaomi, the
third largest smartphone vendor globally, has a minute share
in the Australia/New Zealand market. Its success in Europe,
however, highlights untapped potential in the Oceania
region.
The growth in 5G handset shipments was a key
trend in 2021Q1. Vendors began the year releasing a variety
of 5G devices, including OPPO’s Find X3 range and
Samsungs Galaxy S21 range. As a result, 46% of total
smartphone shipments were 5G capable, a whopping 424%
increase from a year ago. Wilson notes the push globally
from larger vendors as they deploy 5G devices across
geographies. “The NZ mobile network operators have had
greater focus on 5G fixed wireless broadband rather than
mobile services. However, with several 5G devices launching
in the market and greater expansion of 5G coverage, we
expect to see stronger adoption for 5G smartphones in the
coming quarters.
IDC anticipates 5G capable share
to pass 50% in 2021Q2, as Android vendors launch devices in
the mid-range price bands. The Average Selling Price
(ASP) for 5G capable devices was NZ$1550 in the first
quarter. IDC expects this to drop by at least 20% in
2021Q2.
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