South Africans spent more on telecoms products in the first half of 2026, despite buying significantly fewer units, as affordability pressures and longer replacement cycles reshaped consumer technology spending.
This is according to NielsenIQ’s (NIQ’s) latest “State of the Retail Nation” analysis, which found that during the first half of 2026, South African consumers spent R347.7 billion on fast-moving consumer goods (FMCG) products through traditional and modern trade channels.
Sales value grew 5.5% year-over-year and unit sales increased 7.7% compared to the first half of 2025.
The tech and durables (T&D) market experienced a difficult first half as consumer caution and longer replacement cycles dampened sales, it says.
T&D includes telecoms, information technology, major domestic appliances and panel televisions.
Unit sales in this category were down 2.6% year-over-year and the value of the T&D market declined 5.8%.
Telecoms, the largest category in SA’s T&D market, was the only major T&D category to record sales value growth during the period, with telecoms sales value increasing 1.1% year-on-year in the first six months of 2026.
However, telecoms unit sales fell 7.9%, while average selling prices increased 9.8%.
The contrasting performance points to a market where consumers are spending more per telecoms purchase, while purchasing fewer products overall, notes the report.
“Slower discretionary spending took its toll on the T&D sector in the first half,” says Zak Haeri, managing director of NIQ South Africa. “Growing competition from emerging Chinese brands has also introduced more pricing pressure in key segments of the appliance and consumer technology markets.
“Consumers will invest in new products when purchases solve immediate practical needs, improve efficiency or offer strong value for money.”
Demand holds up
According to the report, smartphone demand proved more resilient than most discretionary product groups, although affordability pressures continued to weigh on volumes.
NIQ says growth in both prepaid and postpaid smartphone value indicates some consumers are trading up, even as overall telecoms unit sales declined.
The combination of rising average selling prices and lower unit volumes suggests consumers are becoming more selective about telecoms purchases, with those who do buy potentially spending more on individual products.
“In the IT and smartphone segments, consumers appear to be postponing upgrades rather than rejecting technology altogether. Purchases still happen when the benefit is visible and practical,” he says. “The strongest purchase trigger is capable specifications, practical features and affordability in one package.”
The trend is particularly significant against the wider T&D backdrop, where consumers are increasingly extending product lifecycles.
Under pressure
According to the report, the IT category, which includes IT products, laptops, desktop computers and computer monitors, recorded a much sharper decline than telecoms during the first half of 2026.
IT sales value fell 10.7% year-on-year, while unit sales declined 2.3%. Average selling prices also dropped 8.6%, pointing to increased competition and promotional activity.
NIQ says weak demand affected the entire IT category, as consumers delayed upgrades and kept devices for longer.
“By comparison, telecoms managed to produce modest value growth despite the 7.9% decline in units, making it the strongest-performing major T&D category in value terms.
“The broader findings indicate technology remains a purchase priority when consumers see a clear practical benefit, but affordability is increasingly influencing when and what they buy,” notes the study.
“The theme of the first half of the year was a consumer who continued to become more cautious and cost-conscious. In the FMCG space, manufacturers and retailers face the challenge of using promotions strategically without conditioning consumers to wait for discounts before buying,” adds Haeri.
“In T&D, the pressure is even more pronounced. Consumers are extending product lifecycles and committing only to purchases that deliver exceptional value.”
* Data is based on NIQ’s Retail Measurement Service, which the research firm says is the largest retail data source in the country and the only currency used by all of South Africa’s major retailers. This benchmark data comprises more than 11 000 branded retail outlets and more than 140 000 independent stores across SA’s nine provinces and measures more than 80% of all retail grocery transactions.
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