omestic appliances (SDA), driven by new model launches in telecommunications, and vacuum cleaner and blender segments. It was a mixed quarter for the Australian economy. The Australian dollar fell in comparison to the US, while inflation and unemployment both dipped following rises in the previous quarter. Strong take up of new models The telecoms sector recorded significant double digit growth in Q3 as a result of new phone launches. A fifth of all smartphone value came from models released in the quarter, with the biggest individual smartphone launch in GfK Australia’s history recorded. New phone releases have also come at a higher price, helping drive value growth in the market. Smartphone prices have risen by more than $100 since Q3 last year, a growth of nearly 20 per cent. A key trend is the move towards bigger screens. The value generated by phones with a screen size of 4.5” or larger rose by 67 per cent on last year and accounted for nearly two thirds of all smartphone value. Vacuums and blenders underpin growth Vacuum cleaners – the largest of the small appliance segments – were one of the main drivers of value growth for SDA. Bagless canister vacuums generated revenue growth for the first time in over a year, while the rapid take up of hand stick vacuums continued. Blenders helped fuel the overall value increase for the sector. On the go personal blenders and blenders with cooking functions were particularly popular. The impact of a late dip in temperature at the end of the winter was also noticeable, with a late increase in sales for electrical blankets and heaters. Cooking and dryers stabilise market After consecutive quarters of moderate decline, the major domestic appliances (MDA) sector grew one per cent in value. This growth came despite a decline in volumes, as average prices rose due to a shift towards premium products in most MDA categories. Cooking and dryers are the key highlights for this quarter. Within cooking, pyrolytic ovens were a key proponent of value growth, and now represent nearly as much value as non-self cleaning ovens. For dryers, it is the heat pump segment that gained in value and now accounts for nearly one fifth of all dryer value. In dishwashers, prices rose by seven per cent, as premium brands increased in share, while in hobs and hoods, prices jumped six per cent, as high priced features such as induction and canopies took up a greater share in the market. Even fridges, which was in overall decline, showed some bright spots, with both the bottom mount and French door segments recording value growth. Mobile PCs up, tablets take a hit The value of the IT sector remained relatively flat in the latest quarter, showing a modest decline of 0.3 per cent. While most individual segments performed positively, a sudden slowdown in the sales of media tablets resulted in a decline of the overall sector. Value decline of tablets was particularly steep, reaching double digits, with the decline in volume exacerbated by a move to smaller screens and a softening of average prices. In contrast, the recovery in sales for mobile computing accelerated. The largest of the IT segments, this was the first quarter of value growth for mobile computing since 2011. Big screens and wireless The consumer electronics sector declined by six per cent in value, though there were pockets of growth within the individual segments. In TVs, the demand for super large screens continues to drive the value recovery of the segment. Three quarters of all TV revenue in the quarter came from TVs 47” and above. The move towards bigger screens and higher specifications has led to an overall price increase of seven per cent, however, it should be noted that like for like prices of TVs within key high end segments are still declining. An important feature is UHD/4K which, at its premium price, has helped add value into the market, and now accounts for nearly a fifth of the TV market’s value. In addition to several high profile promotions linked to UHD/4K TVs, the increasing take up has been supported by the launch of a range of new models at an increasingly broad range of screen sizes. High end segment growth has also impacted positively on the audio systems segment, where network music (or multi-room) systems account for nearly a fifth of the market value, as manufacturers and retailers continue to increase their focus on wireless technology. Within this category alone, models that dock or stream wirelessly account for nearly 80 per cent of the value of the segment. Recovery to continue The steep value increase in the telecoms sector is expected to continue into the Christmas quarter, and should off set declines in revenue elsewhere. Despite this positive sign, the performance of the tablet market will be a key factor in whether the market as a whole finishes the year in growth.