2023-11-29 17:42:48
Smartphone shipments in South Africa increased 73% year-on-year in the third quarter and 44% compared to the previous three months, as major Chinese manufacturers strengthened their presence in the continent’s most advanced economy, according to Counterpoint Research.
Although Chinese manufacturers are more broadly interested in the Middle East and Africa (MEA) markets, Counterpoint said South Africa was seen as particularly attractive due to higher income levels and better connectivity infrastructure.
After the latest round of spectrum auctions in 2022, mobile operators have committed to expanding 4G and 5G coverage to more parts of the country, while improving rural, peri-urban and urban networks.
Chinese phone makers such as HONOR, Xiaomi and Transsion are launching many products at lower prices to accelerate the migration from basic phones, Counterpoint adds.
But market expansion in South Africa is also expected to be driven by the premium segment and the premiumisation trend, with Samsung and Apple likely to benefit the most.
Smartphone shipments reached their highest level since 2021 during the quarter, just before the global economic slowdown began, Counterpoint said.
“South Africa is one of the fastest growing smartphone markets in the MEA region. As the country’s economic situation recovers, Chinese OEMs are aggressively trying to capture demand,” said Yang Wang , Senior Research Analyst at Counterpoint.
HONOR’s arrival in South Africa has intensified competition in the low- and mid-range sector with Xiaomi and Samsung, the research firm added.
However, Samsung dominated the market during the quarter despite strong competition. It is the leading brand across all price segments, with A-series devices continuing to drive volumes, Counterpoint said. (Reporting by Nqobile Dludla; Editing by Kirsten Donovan)
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