The New Zealand smartphone market has experienced a robust 10% year-on-year (YoY) growth and 14% quarter-on-quarter (QoQ) growth in 4Q23, shipping 396,000 units, according to analysis from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. The buoyant performance, which came nestled within a period of overall consumer uncertainty regarding discretionary spending, was primarily ascribed to the year-end holiday period and preparations for back-to-school promotions
Significantly impacting market dynamics, the premium segment (priced US$1000+) outperformed expectations, with its market share rising from 18% in 4Q22 to 28% in 4Q23. The IDC attributed this growth largely to the high demand for Apple’s iPhone 15 Pro range, which significantly outperformed the iPhone 14 Pro range's shipments from the previous year. The affordable 4G smartphones in the mid-segments (priced between USD $100 and USD $400), notably the Samsung Galaxy A series, also enjoyed rising popularity with the share of this segment growing from 40% in 4Q22 to 42% in 4Q23. Consequently, the average unit selling prices kept an upward trajectory, reaching USD $612, which represented a YoY increase of 16%.
"The vendors and channels ramped up their promotional activities in the year-end holiday period to spur some growth in an otherwise weak consumer market and after a particularly slow first half of the year. Vendors had started stocking up from late 3Q23 in expectation for the end of year sales period,” noted Kiranjeet Kaur, Associate Research Director, Devices Research with IDC Asia/Pacific.
As the market analysis indicated, Samsung maintained its frontrunner status with its Galaxy A series delivering strong performance together with the new addition Galaxy S23 FE. The company was also in preparation for the flagship Galaxy S24 launch set for January 2024. The majority of Apple's shipments in 4Q23 were attributed to the iPhone 15 series. Another noted trend was OPPO's shipment which dropped YoY and QoQ, largely due to higher sell-in in 3Q23.
This comprehensive analysis reflects a demand-driven market, albeit in a period of relative consumer spending restraint. With increased promotional activity and strategic stocking by vendors, the New Zealand smartphone market has proven resilient, with particular growth in the premium and mid-range sectors.