Australian smartphone sales in 2015 fell by 1 Million - predicted to rise in 2016

2015 didn't seem to be the best year for Australian smartphone purchases, with sales falling by a million year-on-year, according to the annual Australian Smartphone and Wearables Devices Market Study conducted by research firm Telsyte.

Compared to the 8.9 million units sold in Australia in 2014, 2015 recorded 7.9 million smartphone sales. This translates to a decline of 11 percent.

“The Australian smartphone market had a cyclical downturn in 2015, but revenues remained steady offset by price rises,” said Foad Fadaghi, managing director of Telsyte.

Thanks to Apple's anticipated launch of its new iPhones in 2016 and a refreshed line-up of the Android smartphone, Telsyte forecasts a rise in smartphone sales in Australia this year to 8.4 million units.

The study also showed that almost half of iPhone users are yet to upgrade their handsets to the larger iPhone 6 or iPhone 6s models.

“It is getting harder to get consumers to upgrade their smartphones. Manufacturers will need to give customers more reasons to upgrade in 2016 than the end of mobile service contract, or larger screen size” added Fadaghi.

The study also found that the sale of smartwatches, led by the Apple Watch, remained low, although the adoption of fitness wearable devices was commendable.

Telsyte estimated that around 3.5 million Australians are still using regular mobile phones and are yet to upgrade to a smartphone. The research firm foresees a boost in the smartphone market following the shutdown of 2G networks by Telstra and Optus.

The two leading Australian telecommunication companies have confirmed they will discontinue their 2G networks. Telstra will shut down its 2G service by the end of 2016, whereas Optus will wrap up its 2G GSM networks from April 1, 2017. This change means users with older handsets have no choice but to upgrade.