Android takes top spot in Australia, overtakes Apple iPhones

Android overtook iPhones as the most popular smartphones in Australia in the first half of this year, according to analyst firm Telsyte.

Telsyte's research showed Android devices have a 54 percent share of the Australian smartphone market, usurping iPhones, which had a 41 percent slice. Windows phones had just 5 percent.

"Windows Phone-based devices showed relatively slow performance due to the lack of new handsets and Microsoft’s transition away from the Nokia brand," announced Telsyte.

Among the vendors, Sony overtook HTC in the first half of 2015 to take third place in Australia, behind leaders Apple and Samsung.

Users still cite pricing and brand as the top factors in choosing a smartphone, but "lifestyle" reasons like durability and environmental resistance are surging in priority. Sony's Xperia Z3 handsets, released late last year, are water-proof.

Overall, the research estimated 3.7 million smartphones were sold in the half-year, which is a not-insignificant 6 percent drop-off from the same period last year.

"The smartphone market is entering a stage of maturity with growth starting to be driven by demographic factors such as net migration and births," said Telsyte senior analyst Alvin Lee.

Despite the slow-down, the half-year still saw 450,000 people become smartphone users for the first time. A staggering 72 percent of Australians, 17.2 million people, now possess a smartphone. This compares to just over half the population having access to a tablet.

The second half of the year may also see a market shake-up, with Apple expected to release a new handset on Thursday morning - rumoured to be the iPhone 6S. Telsyte predicted 4.5 million smartphones would be sold in this country in the second half.

Smartwatches and smart wristbands

UXC-owned Telsyte also announced that smartwatch sales of 205,000 in the first half of this year did not match vendor hype. Apple was the market leader with a 64 percent stake in Australia, with Samsung and LG trailing.

"The Apple watch remains a luxury gadget, with its sales price typically more than twice the average of rival Android-compatible smartwatches," said Telsyte managing director Foad Fadaghi.

"It is difficult to see mass market consumers paying as much as premium tablets or smartphones for wearable technology that does not have significant new or unique features."

While smartwatches have flopped, smart "wristbands" are doing well – wearables from brands like Fitbit and Garmin saw a 30 percent surge in sales compared to the second half of 2014.

"In some ways the smartwatch market can be classified as the premium part of the smart wrist wearable market," said Fadaghi.