The demise of the feature phone has contributed to a 20 per cent contraction in the total A/NZ mobile phone market, an IDC analyst report has revealed.

The total market, which includes feature phone and smartphones fell by 5 per cent quarter-on-quarter and 20 per cent year-on-year with more than $2.6 million devices shipped in the second quarter of this year.

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The decline in the total market is mainly attributed to shipments in the feature phone market falling 45 per cent.

This was compounded by a slight decline in the in smartphone shipments, highlighting a surprising slowdown in demand.

IDC analyst Aman Bajaj said smartphone shipments fell marginally compared to the previous quarter despite some notable product launches including Samsung's Galaxy S4.

"There has been a slowdown in replacement demand that has previously contributed to the phenomenal growth of the smartphones market," he said.

"Feature phones now only account for under a fifth of mobile phone shipments.

"This suggests that the majority of mobile users have already made the transition to a smart device."

Android is now the leading operating system in the A/NZ market despite iOS continuing to command a loyal following.

According to IDC, Android has benefited from Samsung's solid performance, as well as a push by Sony, Huawei, LG and HTC.

The two dominant players combined for more than 90 per cent of all smartphones shipped into the region.

This showcases the challenging environment competing operating systems, such as Windows and Blackberry, face taking on well-established platforms.

Windows increased its market share slightly taking third place in the market. It was followed by Blackberry, which launched its first set of BB10 devices earlier this year.