Subscribe

Smartphone war in full swing

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 27 Jun 2014
The smartphone war foreseen by industry observers at the beginning of the year is morphing SA's telecoms landscape.
The smartphone war foreseen by industry observers at the beginning of the year is morphing SA's telecoms landscape.

With the "full-scale smartphone war" predicted by industry observers at the beginning of the year already in full swing, the market is shifting in favour of consumers, with falling price points and increasing functionality.

In the past six months alone, consumers have seen the advent of Samsung Galaxy S5, Sony Xperia Z2, Huawei Ascend P7, HTC One M8 and Nokia Lumia 930 flagships - and formidable contender Apple is set to launch its latest iPhone in about three months.

Meanwhile, low-cost smartphones are becoming more prolific, with brands like Nokia, BlackBerry and Alcatel One Touch fighting for a piece of SA's mobile-hungry market too. SA's two leading mobile operators, Vodacom and MTN, also each brought a low-cost, own-branded smartphone to market this year.

Next week, both BlackBerry and Alcatel One Touch are launching new mid-range devices in SA - the Z3 and Idol Alpha, respectively. Microsoft yesterday announced its new mid-range device, the Lumia 630 (powered by the company's new software, Windows 8.1), would be available from next month.

Low-end power

World Wide Worx MD Arthur Goldstuck says, while the buzz around new high-end phones is necessary for the sake of creating brand value through to the lower tiers, it is the entry-level and low-cost devices that are more of a defining feature of how the market will shift this year.

"The biggest intervention is the advent of entry-level smartphones below the $50 mark - and the imminent arrival of high-end devices below the $150 mark."

Two sub-$50 phones - the MTN Steppa and Huawei Ascend Y220 - have been instrumental in SA's smartphone transformation this year, says Goldstuck. "The Huawei Y220 set the market alight and the two were probably the top-selling phones in the first four months of the year."

He says SA can expect to see more of these types of devices emerging this year, especially given Qualcomm's Reference Design Programme that allows any brand to produce their own branded device that is every bit as good as a branded phone or a major manufacturer's phone - at a much lower cost. The Steppa is the first operator-branded phone in SA to utilise this programme, allowing MTN to sell the device for R499.

Goldstuck says the smartphone landscape is in for further transition, as Samsung has a $50 Android smartphone on the way. "It is only a matter of time until [the company] releases it and that will shift the market significantly from feature to smartphones."

Tracking transformation

Looking back over the year, Ovum analyst Richard Hurst says SA's smartphone environment has seen some significant changes. "In the first instance, people are becoming more aware of devices and their capabilities, driven by the ongoing proliferation of devices in both the high-end and low-end consumer markets."

At the same time, says Hurst, SA's mobile operators have been tailoring their data tariffs to drive consumption with end-users who are starting to view their devices as much more than a simple phone or messaging device.

He says the key development observers are tracking is the dropping price points of various devices, while functionality is increasing.

Despite the move from so-called "dumb" to smartphones, Hurst believes feature phones will always be around, but increasing the penetration of smart devices in the country will be key - along with creating awareness of broadband services. "It's plain to see the smartphone will be one of the main keys that will unlock the South African broadband market."

Share