Mobile Phone Sales in Australia: Yearly Statistics and Market Analysis

The mobile phone market in Australia has experienced significant growth and evolution over the past decade, driven by technological advancements, changing consumer preferences, and the emergence of new trends such as 5G connectivity and foldable phones.

Mobile phones have become an integral part of everyday life in Australia, influencing how people communicate, work, and consume media. This article explores the yearly statistics of mobile phone sales in Australia, trends shaping the industry, and future projections.

 

Overview of the Mobile Phone Market in Australia

Australia’s mobile phone market is dominated by global brands such as Apple, Samsung, Huawei, and Oppo. As of 2024, smartphones have reached near saturation levels, with nearly 90% of Australians owning a mobile device. The market is characterized by a consistent demand for both premium flagship devices and mid-range smartphones, catering to a diverse demographic of users.

The Australian mobile phone market can be broadly divided into three segments: premium smartphones, mid-range phones, and budget devices. Premium smartphones, primarily led by Apple and Samsung, dominate the high-end segment, while brands like Oppo, Xiaomi, and Motorola cater to the mid-range and budget segments.

 

Historical Mobile Phone Sales Trends

1. 2010-2015: The Rise of Smartphones

The early 2010s marked the widespread adoption of smartphones in Australia. As mobile internet services improved and phones became more feature-rich, consumers rapidly shifted from traditional feature phones to smartphones. During this period, sales of flagship devices such as the iPhone and Samsung Galaxy surged.

• 2010: In 2010, Australia saw approximately 7.8 million mobile phones sold, with smartphones accounting for about 45% of total sales. The adoption of smartphones was accelerating as more people transitioned from feature phones.
• 2012: By 2012, smartphones had overtaken feature phones in popularity, with 9.5 million units sold, of which around 70% were smartphones. This year saw the launch of significant models like the iPhone 5 and Samsung Galaxy S3, which helped boost sales.
• 2015: The mobile phone market peaked in 2015 with 10.4 million units sold. Nearly all of these were smartphones, with feature phones now accounting for less than 10% of the market. The increasing demand for apps, mobile banking, social media, and gaming on smartphones fueled this growth.

2. 2016-2019: Market Maturity and Slowing Growth

By 2016, smartphone penetration had reached high levels in Australia, leading to a slowdown in market growth. Consumers began holding onto their devices for longer, partly due to the rising cost of flagship phones and the incremental nature of year-on-year upgrades.

• 2016: Mobile phone sales in Australia reached 9.8 million units, slightly down from the 2015 peak. While flagship smartphones continued to sell well, many consumers delayed upgrades, as the performance gap between new and previous models began to narrow.
• 2017: In 2017, mobile phone sales stabilized at 9.7 million units. The launch of the iPhone X, with its revolutionary design and Face ID technology, injected new life into the premium smartphone market, but sales growth was still modest.
• 2019: By 2019, the market had fully matured, with 9.4 million units sold. Despite this slight decline, sales of premium devices like the Samsung Galaxy S10 and iPhone 11 remained strong, while mid-range phones also gained traction among price-conscious consumers.

3. 2020: The COVID-19 Pandemic and Shift in Consumer Behavior

The COVID-19 pandemic in 2020 significantly impacted the global economy, including the mobile phone market. In Australia, the pandemic caused disruptions in supply chains, retail store closures, and economic uncertainty, leading to changes in consumer behavior.

• 2020: Mobile phone sales in Australia dropped to 8.5 million units, a significant decline from previous years. Many consumers delayed upgrading their devices due to financial uncertainty, while supply chain disruptions affected the availability of certain models.
• Despite the overall drop, the demand for mid-range phones increased as people sought more affordable devices. Additionally, the pandemic accelerated the shift toward online shopping, with many Australians purchasing their phones through e-commerce platforms.

 

Mobile Phone Sales by Segment in Australia

The Australian mobile phone market can be categorized into three main segments: premium smartphones, mid-range smartphones, and budget devices.

1. Premium Smartphones

Premium smartphones, led by Apple’s iPhone and Samsung’s Galaxy series, dominate the high-end segment. These devices typically offer the latest technology, high-performance processors, advanced cameras, and premium build quality.

• 2019: Premium smartphones accounted for around 45% of total sales, with flagship devices from Apple and Samsung being the most popular.
• 2020: Despite the pandemic, premium smartphones maintained a strong presence, representing around 40% of total sales. Devices like the iPhone 12 and Samsung Galaxy Note 20 attracted consumers who were willing to invest in high-quality, feature-rich phones.

2. Mid-Range Smartphones

Mid-range smartphones have become increasingly popular in Australia due to their balance of performance and affordability. Brands like Oppo, Xiaomi, and OnePlus have gained market share in this segment by offering competitive features at lower prices than flagship devices.

• 2019: Mid-range phones made up approximately 35% of total sales. This segment grew steadily as consumers looked for affordable alternatives to premium models.
• 2020: Mid-range smartphone sales surged to 40% of the market, driven by the economic impact of the pandemic. Devices like the Google Pixel 4a and Samsung Galaxy A series were popular choices for consumers seeking value for money.

3. Budget Smartphones

Budget smartphones, while smaller in terms of market share, remain an essential segment for consumers looking for basic functionality at the lowest price point. These devices are typically offered by brands like Nokia, Motorola, and some Chinese manufacturers.

• 2019: Budget smartphones accounted for around 20% of the market. They were popular among students, older Australians, and people who only needed basic mobile phone features.
• 2020: As financial uncertainty increased during the pandemic, budget smartphones grew to represent approximately 25% of total sales. The affordability of these devices made them an attractive option for many Australians.

 

The Shift Toward 5G-Enabled Phones

The rollout of 5G networks in Australia began in 2019, and by 2020, the demand for 5G-enabled phones was rising steadily. Although 5G coverage was initially limited, major cities began to see widespread 5G availability, and phone manufacturers started releasing more 5G-compatible models.

• 2020: Around 15% of all mobile phones sold in Australia were 5G-capable, with models such as the iPhone 12 series and Samsung Galaxy S20 leading the charge. The transition to 5G is expected to drive future mobile phone sales as more consumers upgrade to take advantage of faster internet speeds.

Future Trends and Projections for Mobile Phone Sales in Australia

As the mobile phone market in Australia moves into the mid-2020s, several key trends are expected to shape the industry:

1. The Continued Adoption of 5G

The expansion of 5G networks across Australia will play a significant role in driving smartphone upgrades. As 5G becomes more widely available, consumers are expected to replace their older 4G devices with 5G-enabled smartphones to access faster internet speeds and improved performance for streaming, gaming, and downloading.

• Forecast (2024): By 2024, it is estimated that 60-70% of all mobile phones sold in Australia will be 5G-capable.

2. Growth in the Mid-Range Segment

The mid-range smartphone market is expected to continue growing, as consumers increasingly prioritize value for money over brand prestige. With companies like Xiaomi, Oppo, and OnePlus offering feature-packed phones at lower prices, the mid-range segment will attract a larger portion of consumers.

• Forecast (2024): Mid-range phones are projected to account for around 45% of total mobile phone sales by 2024, as more consumers opt for affordable devices with high-end features.

3. Sustainability and Longer Device Lifecycles

Environmental concerns and rising awareness of e-waste are leading many Australians to hold onto their smartphones for longer periods. As a result, the average lifecycle of mobile devices is expected to increase, with fewer people upgrading their phones every year.

• Forecast (2024): The average smartphone replacement cycle in Australia is projected to increase from around 2.5 years to 3-3.5 years by 2024, with more consumers opting for software updates over hardware replacements.

4. Foldable and Innovative Form Factors

The foldable phone market is still in its early stages but has shown potential for growth. Brands like Samsung have already introduced foldable devices, such as the Galaxy Z Fold series, which offer innovative form factors for consumers looking for something different.

• Forecast (2024): While foldable phones will remain a niche segment, they are expected to grow steadily, making up around 5% of total smartphone sales by 2024.

 

Conclusion

Mobile phone sales in Australia have seen significant changes over the past decade, with smartphones now ubiquitous in the lives of Australian consumers. While the market has matured and sales growth has slowed, innovations such as 5G, foldable phones, and mid-range devices are expected to keep the industry dynamic. The impact of the COVID-19 pandemic temporarily disrupted the market in 2020, but as economic conditions stabilize, mobile phone sales are expected to rebound and continue evolving to meet the demands of Australian consumers.