Mobile Phones in South Africa

PROSPECTS

Smartphone usage is on the increase as more consumers can afford these devices

The growth of smartphones is being driven by the greater adoption of entry-level smartphones, as many second-tier brands are making their devices more desirable based on functionality and more importantly on price. Sales of premium devices are declining as consumers continue to migrate to entry-level alternatives.

Greater smartphone penetration is boosting e-commerce as online sales and mobile proximity payment systems increase

The increased penetration of smartphones is playing a significant role in driving e-commerce in South Africa, though local e-commerce is still in its infancy compared with the global market. The digital landscape is rapidly changing as consumers become more connected due to an increasing array of digital products and services.

Mid-tier smartphones are being positioned as premium devices

Developments in the mid-tier smartphones offering are set to shake up the category as these devices have become more affordable and thus more popular. End-users expect innovation and invention from smartphones, regardless of price.

COMPETITIVE LANDSCAPE

A localised services approach is gaining momentum

A localised services approach is playing itself out as Huawei is in the process of implementing a strategy to compete with the leading names in smartphones, Samsung and iPhone. The country has been identified as a key market and plans are being implemented whereby more-localised services along with cheaper flagship devices will be introduced.

Huawei is leading the charge in mid-to-low-range smartphones

Huawei changed its smartphone devices strategy in 2018 to focus on demand for South Africa’s mid-to-low-range smartphones. The next year will see the introduction of mid-to-low-range phones that bring user experience, camera quality and operating system technology that are associated with higher-end or premium smartphones to a broader group of consumers.

Affordable devices are set to increase in number over the forecast period

It is anticipated that the penetration of affordable smartphones will increase over the forecast period, despite the preference for leading international brands. Consumers are becoming more open to trying affordable brands that are attempting to make gains locally.

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