Spike in smartphone sales in South Africa in 2018

The new data messages you will get from Vodacom, MTN, Cell C and Telkom next month spike in smartphone sales in south africa in 2018 - WOP61Qxy36c3fZzT4RlWWzN2 w86PQ8bjC27N94iNQiRJ4v81nYpjWnGMlAHWRhhjcM5RFAVVVZGmKVmWUdc1ZVnyB6P8wNAu3o1nAAAAAElFTkSuQmCC - Spike in smartphone sales in South Africa in 2018

The South African smartphone market enjoyed solid growth in 2018, with unit sales rising 7.2% year-on-year to around 13.5 million and value growing 13.2% to just under R35 billion.

New sales tracking data from GfK South Africa’s Weekly Monitor shows that unit sale growth for the fourth quarter of the year declined 8.7% to 3.6 million units compared to Q4 2017.

GfK’s data shows that while the high-end smartphone segment (R6,000 and above) accounted for 9.7% of smartphone unit sales during 2018 – it contributed almost 50% in value.

Low-end smartphones (R1,499 and below) accounted for 61% of unit sales in 2018, but contributed just 17% to the value of the market.

“South Africa’s smartphone market has fragmented into low, mid and high-end segments, with operators focusing for much of 2018 on driving volume sales in the entry-level and lower-end of the market and on average revenue per user (ARPU) and value at the high-end,” says Nicolet Pienaar, product manager at GfK South Africa.

“However, the dip in the fourth quarter indicates that operators chose to focus on value over unit sales over the Black Friday and Christmas period.”

“Operators reduced or pulled subsidies on entry-level smartphones in the fourth quarter, which caused unit sales to contract,” said Kali Moahloli, commercial head for Market Insights at GfK South Africa.

“This segment of the market remains price-sensitive rather than feature-driven.”


The panel television market enjoyed another good year of a growth against the backdrop of a weak market for technical consumer goods.

Unit sales for 2018 were up 13% to 1.1 million year-on-year, while the value of the market was R6 billion, up nearly 7% on 2017.

Good sales over the Christmas and Black Friday periods helped to drive the growth of the market.

For the fourth quarter, panel TV unit sales climbed 12.7% year-on-year to 378,000 and value increased 7.7% year-on-year to R2 billion. Ultrahigh definition technology, price drops and larger screen sizes influenced panel TV growth over Black Friday.

“Black Friday week is the annual seasonal peak for panel television sales in terms of both value and volume. In 2018, retailers shifted around 93,000 units worth about R500 million during the week of Black Friday,” said Moahloli.

“People save far in advance for the Black Friday specials, which have become a seasonal event in this market.”

The South Africa technical consumer goods market overall showed flat growth in the fourth quarter of 2018 compared to the same quarter in 2017.

Major Domestic Appliances (MDA) saw 7.4% growth in value, and Small Domestic Appliances (SDA) increased by 11.9% in value.

Read: Samsung launches most extensive new lineup of smartphones

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