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More users now buying smartphones outright than on a contract


iphone5s1For the first time more than half of all smartphones in Australia were purchased outright instead of on a contract over two years, new research has revealed.

Telstye’s Australian Smartphone Market Study has shown that only 43 per cent of Australians aged 16 years and older acquired their smartphone by committing to a contract in 2013.

This compares to 57 per cent in 2012 that clearly shows Australian users now prefer to buy their devices outright instead of being locked into a contract.

Another explanation for this is the number of people who receive a smartphone as a gift, are given a device by their employer or are simply given a “hand me down” handset.

Telstye’s report shows outright purchases are increasing as prices of devices and carrier subsidies are falling.

“The unbundling of handset and mobile service contracts has been growing in popularity as consumers seek new handsets more frequently than the typical 24 month contract,” Telsyte Managing Director Foad Fadaghi says.

But free handsets on a mobile contract still appeal to a large number of customers and helped Android devices increase their market share.

Of these customers, 56 per cent received their handset free of charge without additional monthly payments.

At the end of 2013 there were 15 million Australian smartphone users – an increase of more than 2.6 million from 2012.

Android still leads the way with 50 per cent of devices running that platform followed by Apple at 43 per cent and the remaining 8 per cent made up of Windows Phone, BlackBerry and Symbian.

But iPhone users are a lot more loyal to the platform with 73 per cent saying they would buy another iPhone in their next smartphone purchase, up from 71 per cent in 2012.

Android users were not so faithful, according to Telsyte, with repeat purchase intention at 56 per cent which is actually an increase from 52 per cent in 2012.

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