South Africa’s smartphone market witnessed remarkable growth in 2023, fuelled by fierce competition among Chinese manufacturers and a burgeoning appetite for digital services, according to a report by Counterpoint Research.
The country’s smartphone shipments soared 29% year-on-year, marking the highest annual growth rate on record. The surge was propelled by a robust second half of the year, which saw intensified promotional efforts from major brands and the increasing availability of device financing schemes through operators and retail partners.
Yang Wang, a senior research analyst at Counterpoint, remarked, “Despite facing multiple macroeconomic challenges, South Africa’s smartphone market continues to grow, driven by popular demand, widening availability of digital services, and the increased presence of Chinese original equipment manufacturers (OEMs).”
The final quarter of 2023 was particularly noteworthy, with smartphone shipments skyrocketing by 91% compared to the same period in 2022. This meteoric rise was spearheaded by the Chinese brand HONOR, which secured a commanding 24% market share, cementing its position as the quarter’s leading player. The brand’s success was underpinned by the popularity of its HONOR Magic 4 Lite 5G and HONOR X6 models.
Other Chinese OEMs, including Xiaomi, TECNO, and itel, aggressively expanded their footprint in the South African market, with their shipments surging by 86%, 80%, and 93% respectively during the quarter.
In line with global trends, South African consumers are increasingly gravitating towards premium smartphones priced above $800. This segment witnessed a 57% year-on-year increase, primarily driven by Apple, which experienced an 83% growth during the year. Concurrently, the $150-$249 price band grew by 26%, as budget-conscious consumers upgraded to mid-range devices offering better value propositions.
The adoption of 5G technology is rapidly gaining traction, with 5G smartphone shipments growing by 31% year-on-year as device prices continue to decline. The anticipated expansion of 5G coverage, particularly in urban centres, is expected to further bolster the penetration of 5G smartphones in the country.
Brand Highlights for 2023:
Samsung: Although Samsung experienced a 6% decline, it retained its position as the leading brand in South Africa in 2023. However, the company’s market share has steadily eroded due to intense competition from Chinese OEMs. To counter this, Samsung is experimenting with device financing and trade-in schemes to enable customers to acquire higher-value devices at a lower cost.
HONOR: The brand experienced the most significant growth in South Africa in 2023, rising from near obscurity to claim the second position in the market. HONOR’s success was primarily driven by its increased focus on the South African market in the second half of the year, bolstered by the popularity of its Magic4 and X series smartphones. Furthermore, the availability of higher-end models from its flagship and foldable ranges significantly improved the brand’s reputation.
Xiaomi: Xiaomi’s shipments grew by 61%, fuelled by the success of its Redmi 10 series and Redmi Note 11 series, which were among its major volume drivers. The company is now focusing on expanding its portfolio in the $250-$399 segment with the recently launched Redmi Note 13 series.
Transsion Group: The group, which includes brands like TECNO and itel, witnessed a 48% growth, primarily driven by TECNO’s 64% surge in the country. TECNO’s Pova 4 Pro and Spark 8C were its biggest volume drivers, while itel’s A and S series continued to gain popularity in the low-end market. Both TECNO and itel are actively pushing online and offline promotions to further expand their presence.
As South Africa’s smartphone landscape continues to evolve, driven by shifting consumer preferences and the growing accessibility of devices, the competition among manufacturers is set to intensify further. Established players and emerging brands alike will need to innovate and adapt their strategies to capture a larger share of this dynamic and increasingly lucrative market.