New Zealand Smartphone Market Grew by 0.9% in 2022, Shipping 1.47 Million Units, Says IDC

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For more information, contact:

• Michael De La Cruz  Email: mdelacruz@idc.com
• Miguel Carreon  Email: mcarreon@idc.com
• Zachary Candy  Email: zcandy@idc.com

New Zealand, March 01, 2023 – According to the International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker, the New Zealand smartphone market grew 0.9% year-on-year (YoY) in 2022 to reach 1.47 million units, bucking the trend for decline that has occurred annually since 2019.

In 4Q22 shipments declined significantly, by 21% YoY, caused by soft consumer demand, high inflation and economic uncertainty. This is the lowest reported fourth quarter smartphone shipment volume since 4Q10, despite the fourth quarter usually being the strongest quarter due to seasonal sales.

"This fourth quarter lull can be attributed to scaled down consumer spending as the fear of a recession in 2023 looms over New Zealand economy," said Zachary Candy, Lead Analyst for Client Devices – Mobile Phones at IDC New Zealand. "Adding to the challenges for vendors, consumers have begun to rethink how often they are upgrading their devices. Software upgrades are available for longer, and there are fewer step changes/innovations between the updated series and the former version thus reducing consumers' motivation to upgrade as frequently,” added Candy.

4Q22 Top 5 Smartphone Vendor Highlights

Apple shipments decreased 10.4% YoY. However, shipments grew 4.1% Quarter-on-Quarter (QoQ), the result of a successful iPhone 14 series launch, and an improved supply chain compared to the iPhone 13 launch. In 4Q22 Apple's iPhone factory in Zhengzhou experienced significant staffing disruptions due to COVID restrictions. Apple made up for the supply shortages of October and November by increasing supply in December.

Samsung shipments declined 28.7% YoY, and their market position dipped to second place. Galaxy A series devices made up the lion share of shipments, with the new Galaxy A04, along with the existing Galaxy A13, A23 and A33 being the most popular. Samsung’s share decreased from 47.3% to 36.4% in 4Q22.

OPPO shipments were high in 4Q22, up 33.5% YoY, and 77.8% QoQ. OPPO’s focus on building its channel partnerships especially in the telco channel along with a healthy supply of devices has helped OPPO remain the top Chinese smartphone brand in New Zealand and move into third position overall with 13.1% market share.

Vodafone shipments declined 61.9% YoY, and market share decreased from 7.5% to 6.5%. Vodafone shipments tend to peak in the third and fourth quarters of each year due to seasonal demand for lower priced smartphones. In 4Q22 Vodafone refreshed its range with a variety of Vodafone Smart devices: Smart V22, Smart T23, and the Smart Green – an affordable eco-friendly 4G device.

HMD (Nokia) shipments remained relatively flat in 4Q22, declining 3.2% YoY. Despite the annual decline, the market share improved from 2.2% to 2.6% in 4Q22. Fourth quarter Nokia shipments have gradually increased in the New Zealand market since 2019. Nokia branded smartphones have had somewhat of a resurgence in popularity this past year due to improving specs, and new releases in the low-end price band.

2023 outlook

IDC expects the overall smartphone market in New Zealand to fall by 5.4% YoY in 2023. Smartphone performance is expected to be weakened by waning consumer confidence and high inflation. Although 2H23 shipments are expected to be greater than 1H23, fear of recession in mid-to-late 2023 has resulted in a more cautious outlook.

Vendors have begun consolidating their portfolios and are readjusting strategies amidst profitability concerns. The average selling price of smartphones is expected to increase slightly YoY to help maintain revenue.

To know more about the IDC Worldwide Quarterly Mobile Phone Tracker, please contact Zachary Candy at zcandy@idc.com. For media inquiries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon at mcarreon@idc.com.

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