Economic Forecast for the Supply and Demand of Mobiles Phones or Smartphones in Australia

Topic: Economic forecast for the supply and
demand of mobiles phones or smartphones in
Australia over the next 10 years

Mobile Market In Australia
• Mobile device is an ubiquitous item for the Australians. Over 97% of the
Australians use mobiles.
• The mobile industry contributes approximately $23 billion to country’s
income Over 1.6 million people are working with the mobile industry.
• Bureau of Communications Research suggests that mobile market can
raise the GDP per capita to $2000 by 2030 owing to 5G network
connectivity.

Share of different mobile companies in the Australian mobile market
Figure 1: Market share (Jan’18 – Apr’19)
Source: (statista.com, 2020)
• From figure 1, Apple is the
leading mobile phone company
in Australia as of 2019 following
Samsung, Huawei and others.
• Since 2017, Apple has been the
dominating company in the
Australian mobile phone market.
• The company holds more than
50% share of the entire mobile
market.
• Smartphone market penetration
rate is expected to reach 75% y
2022.

Figure 2: Smartphone penetration rate in Australia (2012 -2022)
Source: (statista.com, 2020)
Mobile phone penetration refers to the use of SIM cards in an economy. On this account,
the number of mobile devices using by the consumers can be predicted. According to the
diagram the penetration rate expresses sharp improvement from 44% to 74% over ten
years (2012 -2022)
Number of mobile phone users in Australia

Non-price determinants of demand for mobile devices over the
next decade
• Invention of mobile apps to overcome the social challenges including safety and
managing the responsibilities.
• Advancement of technology as per the changes in the social dimension.
• Growing demand for the essential utility service of the mobile among the
Australian citizens including youth and elders.

S
D1 for 2020
Quantity
Price
Q1 Q2
P1
P2 E1 E2
D2 for 2030
Expected improvement in the demand curve
Figure 3: Rightward shift in the demand curve
Source: (as created by the author)
Figure 3 illustrates that the demand for mobiles is expected to increase from D 1 to D2
corresponding to the optimum output level from Q1 to Q2, keeping supply constant.

Non-price determinants of supply for mobile devices over the next decade
• Evolving growth of mobile network operators in the wireless infrastructure (Santo
et al., 2016).
• Growing number of retailers of handset and hardware of physical mobile devices.
• Rapid expansion of Mobile Virtual Network Operators (MVNOs).
• Enhancement of telecommunications network including laptops, tablets and other
(IoT) devices (Businessinsider.in, 2020).

Expected improvement in the supply curve
S1 for 2020
S2 for 2030
D
Quantity
Price
Q1 Q2
P1
P2
E1
E2
Figure 4: Rightward shift in the demand curve
Source: (as created by the author)
Figure 4 illustrates that the supply for mobiles is expected to increase from S1 to
S2 corresponding to the optimum output level from Q1 to Q2, keeping demand
constant.

Source: Sales trend of mobiles in Australia (2015 – 2024)
Source: (businessinsider.in, 2020)
Growth trend in the selling of the mobiles

Demand and Supply framework
S1
S2
D1
Quantity
Price
Q1 Q2
P1
P2
E1
E2
D2
Figure 5: Cumulative improvement in the demand and supply curve increases mobile
production and decreases average price of mobile in Australia
Source: (as created by the author)

Strength
 Advanced utility service.
 Safety features of the mobile apps.
 Affordable cost.
 Availability of multiple mobile brands.
Weakness
 Complex features of premium mobile
brands.
 High price of the premium smartphones.
 Inefficient service provider.
Opportunities
 Growing customer demand for the mobile
devices (Golev et al., 2016).
 A number of aspiring investors in the mobile
market.
Threats
 Evolving number of international mobile
competitors.
 Price difference between the retail shops
and e-commerce platforms.
SWOT Analysis

Market Forecast
• Mobile market predicts that Australian economy will be gained by $65 billion
by 2023 (Deloitte.com, 2020).
• Approximately 4% of the full employment of the economy is supported by the
mobile manufacturing companies.
• Introduction of 5G network technology enables new opportunities for the
Australian mobile market.

Conclusions
In a concluding note, it can be said that mobile phone market holds great
strength in the Australian electronics and employment sector. This is a lucrative
aspect for the Australian investors to focus on the mobile market. Its
ubiquitous importance in the social life is the driving force of the growing
demand of the mobile devices.
Most importantly, innovation of new technology coupled with advanced
features is expected to enhance the sales volume of the mobiles. The growing
competitors is likely to help in improving the quality and service of the mobile
companies.

Reference
• Statista.com. (2020). Australia - smartphone vendors market share
2019 | Statista. (2020). Statista.
https://www.statista.com/statistics/861577/australia-mobile-device-
vendors-market-share/
• Statista.com. (2020) . Australia - smartphone penetration 2012-2022 |
Statista. (2020). Statista. https
://www.statista.com/statistics/321477/smartphone-user-penetration-
in-australia
/
• Businessinsider.in. (2020). Rise of M-Commerce: Mobile Ecommerce
Shopping Stats & Trends in 2020. (2020). Business Insider.
https://www.businessinsider.in/finance/news/rise-of-m-commerce-
mobile-ecommerce-shopping-stats-trends-in-2020/articleshow/
72860972.cms
• Deloitte.com(2020). Www2.deloitte.com.
https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Ec
onomics/deloitte-au-economics-mobile-nation-2019-080419.pdf

• Santo, K., Richtering, S. S., Chalmers, J., Thiagalingam, A., Chow, C. K., &
Redfern, J. (2016). Mobile phone apps to improve medication adherence:
a systematic stepwise process to identify high-quality apps. JMIR mHealth
and uHealth, 4(4), e132.
• Golev, A., Werner, T. T., Zhu, X., & Matsubae, K. (2016). Product flow
analysis using trade statistics and consumer survey data: a case study of
mobile phones in Australia. Journal of Cleaner Production, 133, 262-271.