Technological developments over the next five years are projected focus on improving computing capabilities, rather than form
Melbourne, Australia (PRWEB) October 25, 2014
The Mobile Phone and Tablet Wholesaling industry in Australia features several established industry operators, which are typically local subsidiaries of large global technology companies. The industry wholesales a range of products that include Android phones, iPhones, tablet computers and older-style feature phones. Technological developments such as the launch of the Apple iPhone in 2007 and the iPad in 2010 have spearheaded rapid adoption of smartphones and tablets. Industry revenue is forecast to expand by an annualised 10.4% in the five years through 2014-15. This includes forecast growth of 9.8% in 2014-15, to reach $7.5 billion. Industry operators wholesale products to online and bricks-and-mortar retailers, and also telecommunications carriers, which bundle industry products with data plans. According to IBISWorld industry analyst Nick Flores, “wireless telecommunications carriers have increasingly promoted product launches of smartphones and tablets as a means to increase their respective user bases.” The improvement of 4G mobile networks, combined with the expansion of Wi-Fi networks, has promoted greater adoption of smartphones and tablets.
The growth in mobile telecommunications density has supported the industry, but this is gradually slowing, which reflects increasing market saturation. “Technological developments over the next five years are projected to focus on improving computing capabilities, rather than form,” says Flores. In line with increasing online connectivity, smartphones and tablets are projected to serve as a hub to link with other gadgets and consumer wearables. The industry has high market share concentration, as it is dominated by international giants Apple and Samsung, which together account for the majority of industry revenue.
The major players in the Mobile Phone and Tablet Wholesaling industry benefit from the strong research and development base and global brand awareness of their respective parent entities. These companies are large within the Australian market, as they are backed by parent companies with substantial scale within the global market for mobile phones and tablets. These companies are able to achieve significant economies of scale by selling mobile phones and tablets to all corners of the globe, and the subsequent profit derived from these sales supports increased R&D and marketing spending. Such spending typically results in greater product innovation and brand awareness, which helps to consolidate these companies' positions in the industry. Concentration has increased over the past five years, as the industry's growth has largely been based on the innovation of Apple and Samsung. Beyond these two companies, the industry is made up of a small number of medium-size players that all have significant overseas operations in a variety of consumer electronics, but these players have been unable to capitalise on market trends as successfully as the big two.
For more information, visit IBISWorld’s Mobile Phone and Tablet Wholesaling industry in Australia report page.
Industry operators are engaged in wholesaling mobile phones and tablet computers. These products are typically sold to retailers for consumers to purchase them outright, or they are sold to wireless network carriers for consumers to purchase them either outright or on long-term contracts that also include network coverage.
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IBISWorld Industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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