The world's top two smartphone manufacturers are neck-and neck in Australia – and are likely to adopt new tactics to try and gain a competitive edge.
Foad Fadaghi, managing director of Telsyte, told News Australia that over the coming months, the fierce competitors are likely to try and convince customers to trade in their old devices in exchange for the latest upgrade.
Samsung announced its flagship Galaxy Note 7 last week (August 2nd) – and the device boasts cutting-edge features such as an eye scanner, water resistance and more storage than some computers.
Apple is tipped to unveil the latest version of its perennially popular iPhone next month, which is also likely to represent a significant step up from the previous version of the device.
However, there are challenges facing both companies – not least of which is the fact that consumers are increasingly likely to keep their current phone for a longer period of time before committing to an upgrade.
“Apple and Samsung certainly need to add something new this year,” Mr Fadaghi commented. “Regardless of whether you're an Android or an Apple buyer, people are looking for much more than they got in their last purchase.”
“If they're going to spend $1,000-plus they want the new product to be substantially better – better performance, maybe a professional grade camera. Manufacturers need to respond to that.”
Mr Fadaghi said Australians have embraced smartphones with considerable enthusiasm – and over 17.6 million were in use by the end of last year.
However, the length of time between upgrades is growing – particularly for owners of Apple iPhones.
Indeed, a study conducted by technology market research and analysis firm Gartner suggested premium phone users are extending life cycles to 2.5 years.
This is not expected to change over the next five years – and poses a challenge to manufacturers who release an upgrade every 12 months.