Given the rising cost of living over the past few years, it's little shock that more and more Aussies may be moving towards mid-range devices like the Samsung Galaxy A56 or Nothing Phone 3a.
According to data shared with Reviews.org Australia, consumer interest in smartphones that fall between the $500 and $749 in price almost doubled over the past quarter. Interest in devices that fell between $249 and $499 also rose, while more premium segments fell over the same period.
These figures were put together by Edentify on behalf of OPPO Australia. The agency surveyed approximately 1000 smartphone owners aged 18 years or older across Australia on their future intentions and past phone purchases. Even if the sample size is relatively small and the motivations of the company that commissioned the research aren’t hard to guess at, it still paints an interesting picture about how Australia’s smartphone landscape is drifting during a period of high inflation. You can take a look at the data for yourself in the table below.
Asked for comment, OPPO Australia’s Managing Director Michael Tran suggested the key drivers of the trends seen above have as much to do with innovation in the mid-range market as they do with rising expectations from consumers.
“Technology is moving fast and what used to be reserved for flagships – think 5G, AI, increased durability, large batteries and fast charging – has now made its way into mid-range devices, especially in the Android space,” he said.
According to Tran, the arrival of these features has changed the dynamic of competition for manufacturers like OPPO that are looking to sell cheaper smartphones to more cost-conscious customers.
Just because the more prominent mid-range devices like the recently-released Google Pixel 9a are being released in the first half of the year doesn’t necessarily explain away the segment's growing popularity. Although Tran acknowledged the increased interest towards mid-range devices seen in the data does align with seasonal refresh cycles, he framed the trend as a broader and market-wide movement.
“Consumers are becoming more tech-savvy and budget-conscious, realising that the mid-range market now offers the best value for money. The increased focus on accessibility and innovation means the timing of product releases in April is amplifying a trend that’s already taking shape,” he said.
Consulted for a second perspective on the trends seen in the data, Telsyte senior analyst Alvin Lee told Reviews.org a similar story.
Pointing to the Telsyte Australian Smartphone & Wearable Devices Market Study 2024-2028, he said the sales growth and momentum seen in the premium and budget segments throughout 2024 could shift towards the mid-range market in the month ahead, “as these increasingly offer selected flagship-level features without the flagship price”.
Lee also highlighted the increased longevity offered by modern mid-rangers as a key selling point.
Where long term software support used to be reserved for flagships like the iPhone 16, even the likes of the new OPPO A5 Pro 5G now come with five years of software updates and six years of security updates. Given that, it’s little surprise that Lee noted Aussies are often hanging onto many of these mid-range devices at least a year longer than their premium counterparts.
Regardless of whether that behavior is driven by demographics, macroeconomic trends or something else entirely, it represents something of a challenge for brands looking to sell more expensive devices. What’s more, those headwinds may already be visible in the data.
As seen above, OPPO’s data indicated a pronounced decline in the intent to spend more than $750 on a smartphone.
Tran speculated that more premium-tier buyers are having second thoughts about the asking price attached to flagship devices and choosing to err on the side of devices that offer more value for money rather than more bells and whistles.
“While there will always be a market for flagships, we’re seeing more everyday Australians gravitate toward mid-range devices that deliver high-end features at more accessible price points,” he said.
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