According to IDC, 2.32 million units of mobile phones were shipped into Australia in the third quarter of 2015. This represents a decline of 22% on quarter, which is expected when taking into account seasonality and excess channel inventory. When compared to a year ago, the overall mobile phone market in Australia grew by 29.2%. Much of this growth is attributed to the continued popularity of Apple's iPhone 6 and iPhone 6 Plus. Momentum is also seen in the entry-level smartphones such as the Telstra Tempo and Rush, with both phones selling below AUD100.

Mobile phone operators ran aggressive marketing campaigns to stimulate re-contract and new business. The main value-proposition driving the promotions was increased data-allowance across different price-plans. Several flagship models also became available at a cheaper monthly-plan, including the Samsung Galaxy S5 and HTC One M8. This pre-emptive move was to accommodate for the new flagship (Samsung Galaxy S6 and HTC One M9) launch in the second quarter of 2015.

"Phablet adoption in Australia was catalyzed by the introduction of the iPhone 6 Plus. Market share of phablets grew from 9% in the third quarter of 2014 to 38% in the fourth quarter of 2014. Growth of phablets continued in the first quarter of 2015, reaching a market share of 41%. More phablet models are coming to Australia this year, including the Microsoft Lumia 540XL and LG G4. By the end of this year, one in two smartphones sold in Australia are likely to be a phablet," said Joseph Hsiao, market analyst at IDC Australia.