Australians are now buying smartphones outright rather than on installments, according to research. Only 40% of people bought phones on a contract basis, compared with 60% in 2012.
It is the first time that the percentage of mobile phones bought on credit has fallen, according to statistics released by Telsyte.
Around 30% of Australians purchased their phones outright, while the rest received them as a gift or through work.
Falling phone prices are one of the main reasons people tend to buy phones outright.
According to the MD of Telsyte, people nowadays want to change their mobile phones more often than a two-year contract allows.
According to The Telsyte Australian Smartphone Market Study, the number of second-hand smartphones has doubled over the past year. The company releases this study every year.
As in the earlier version of the report, people under the age of 34 are keenest on mobile phones, with 46% planning to buy a new phone within the next two years.
The research involved interviews with smartphone executives, financial reports from makers and carriers of mobile phones, and an internet survey of over 1,000 adults.