Smartphone sales rev up as Kiwis head back to the office

New numbers reveal the pecking order in the New Zealand smartphone market as it continues to recover from its Covid low.

Market researcher Gartner says Apple shipped 143,000 iPhones into the NZ market in the second quarter for 40.9 per cent market share — almost level with its year-ago position — while Samsung gained three points to finish second on 39.4 per cent share as it shipped 117,000 units.

Meanwhile, Chinese phone makers Oppo and Xiaomi have made hay from Huawei’s virtual withdrawal from the NZ smartphone market following US sanctions that limited its access to Google’s Android software and app store.

Despite lingering supply chain issues, the total size of the market increased from the year-ago quarter’s 322,000 phones to 350,000.

Both figures represent a pep-up from the second quarter of 2020, when smartphone shipments more than halved to trough at 150,000, followed by 155,000 for the following quarter. The reason: diverted spending. The long-sleepy PC market suddenly jumped 55 per cent as people rushed to update home offices.

As people return to the office, that cycle seems to be over. Gartner says PC shipments were down 12.6 per cent in the second quarter.

Meanwhile, Apple and Samsung look set to continue their dominance of the smartphone market for the rest of the year.

Apple has just released its iPhone 14 lineup (though lead times are stretching for the Pro Max) while Samsung has established a new and growing smartphone niche with its foldable series, recently updated with the Galaxy Z Flip4 and Galaxy Z Fold4.

Gartner rival IDC says both Apple and Samsung are benefiting from a trend toward more sales of top-shelf models. IDC says 20 per cent of NZ smartphone sales are now in the “super-premium” category, or models over $1500.

Telcos are bolstering the trend with perks like 36-month interest-free payment options and incentives that can see you pay up to $955 if you trade-in a late-model handset.