For years, Samsung has ruled South Africa’s postpaid smartphone market, dominating both the mid-range and premium segments. But July 2024 delivered a reality check: HONOR is no longer content to play second fiddle. Armed with aggressive pricing, clever product positioning, and a growing reputation for quality, HONOR has emerged as a legitimate contender to Samsung’s throne.
HONOR’s Calculated Climb
At the centre of this shake-up is the HONOR 200 Lite, July’s best-selling postpaid device. With 46% of its sales tied to postpaid plans, the device outperformed mid-range staples like Samsung’s Galaxy A25 and A35, which achieved 28% and 23%, respectively. The secret to HONOR’s success? A sweet spot of affordability and functionality, with the 200 Lite priced at R349 on a 36-month plan — an offering that appeals to the country’s budget-conscious but tech-savvy consumers.
HONOR’s momentum isn’t confined to a single device. Models like the HONOR X7B complemented this performance, proving the brand’s ability to compete across price tiers. What makes HONOR’s rise particularly striking is its ability to attract consumers who previously leaned towards more established names like Samsung or Huawei.
Samsung Still Leads — But Faces a New Reality
Make no mistake: Samsung remains the dominant player, holding 29% of the top 25 postpaid devices sold in July. Models like the Galaxy A25 and A35 are still crowd favourites, helping Samsung secure a steady stream of mid-range sales.
However, the cracks in Samsung’s dominance are beginning to show. Its flagship Galaxy S24 Ultra saw a 7% decline in month-on-month sales, hinting at increased competition in the high-end space. More critically, HONOR’s strong showing in the mid-range — a segment Samsung has long dominated — raises questions about how well the company can defend its position moving forward.
The Role of Apple and Huawei
While HONOR and Samsung grab headlines, Apple and Huawei remain steady players in the background. Apple captured 12% of the top 25 market, driven by the performance of its iPhone 15 series, which continues to attract a loyal premium customer base.
Huawei, on the other hand, claimed 14% of the market. Devices like the Nova Y72 and Pura 70 show that Huawei still commands a following in South Africa, particularly in the mid-range space. While Huawei may not be threatening Samsung’s or HONOR’s share directly, its steady performance ensures it remains a key player.
Consumer Trends: Networks Shape the Market
Weekly sell-out trends offer further insights into South Africa’s postpaid dynamics. Sales rose steadily throughout July, peaking at 3,457 units in week 30, reflecting increasing demand for contract-based offerings.
MTN and Vodacom remain the dominant networks, accounting for 30% and 51% of postpaid sales, respectively. The role of networks in bundling affordable plans with top-selling devices cannot be overstated — it’s a dynamic that has allowed HONOR to rapidly penetrate the market by leveraging its partnerships.
A Market at a Crossroads
HONOR’s rise signals more than just a new competitor entering the fray — it’s a wake-up call to incumbents like Samsung. As South African consumers demand better value and flexibility, brands that deliver compelling features without breaking the bank will increasingly dominate the conversation.
Samsung, for all its legacy and scale, can’t afford complacency. With HONOR’s 200 Lite stealing the spotlight in July, the coming months will determine whether this is a momentary shift or the beginning of a larger realignment in the market. One thing is certain: the battle for South Africa’s postpaid smartphone market is just getting started.
