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Nokia holds on to SA market

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 12 Aug 2011

Nokia still holds the lion's share of SA's mobile market, according to the results of the 2011 Mobile Insights Survey from Nielsen.

The results show Nokia still dominates as the brand that is both top of mind and most widely in use in SA.

Sixty percent of South Africans said Nokia is the brand that is top of mind, followed by Samsung at 14% and BlackBerry at 6%. These results also reflect the handsets currently in use, with 52% of respondents owning a Nokia device, 25% using Samsung and 7% using a BlackBerry.

The survey was conducted in urban areas, among 2 000 South Africans. According to Nielsen, the results were scientifically weighted to be representative of the South African population at large. The survey forms part of the Nielsen Global Mobile Media Survey, which has been implemented in 18 countries.

In line with similar reports, BlackBerry is set to gain market share, as 19% of respondents said BlackBerry would be their next handset of choice.

According to the BMI-TechKnowledge SA Smartphone and Tablet Early Adopter Study, however, higher-end users in the South African market are losing interest in BlackBerry, as only one in five current BlackBerry owners in that market segment plan to stick with the brand for their smartphone.

Among early adopters, Nokia's popularity has dropped dramatically, with 40% having previously owned a Nokia, 26% currently owning one and only 9% planning to stick with the brand. In contrast, 30% of early adopters said an iPhone would be their next smartphone of choice.

According to the Nielsen study, however, the majority of South African mobile users would be sticking with Nokia, with 56% of South Africans saying their next phone will be a Nokia device. Samsung could stand to lose market share, as only 16% of South Africans intend to buy a Samsung handset next.

Picking providers

Turning to cellular providers, according to the Nielsen survey, the biggest draw factor for consumers is price (32%), followed by network quality (21%). For Virgin Mobile, however, the factor that draws subscribers is mainly customer service, according to the survey.

The majority of respondents (64%) said they buy their airtime from Spaza stores. A further 57% recharge at supermarkets. In terms of where subscribers are buying their handsets, clothing store Jet came out on top at 13%, followed closely by Pep stores at 12% and Edgars and MTN at 11%.

As for how many subscribers plan to switch from prepaid to contract packages in the next year, only 14% said they would definitely be looking to do so. The majority (61%) said they would stick to prepaid.

Network loyalty

While on the whole, 69% of subscribers said they do not plan to switch networks, Cell C had the highest number of subscribers wanting to leave - 19% said they would, and a further 20% said they “might” change. For Vodacom, 10% said they would switch to another network and 21% are considering leaving.

Meanwhile, no Virgin Mobile subscribers indicated they would change providers, and only 13% said they “might” leave the network.

The study also showed that 95% of all subscribers have been with their current network for an average of 4.2 years, with only 5% having joined their current network within the last 12 months. Of those who have changed networks, 27% said they left because of poor network quality, while 14% left due to problems with their handsets.

According to the survey, brand loyalty is an especially important aspect for cellular providers as 81% of respondents said they recommend their network to their friends.

Getting social

Social media is undoubtedly on the rise, as 85% of subscribers currently use Facebook, with 61% using MXit and 24% on Twitter.

As one would expect, the use of mobile Internet and social media increases, according LSM groupings, as 29% of the LSM 8-10 group uses social media on their mobile, and 25% use mobile Internet. Fifteen percent of the LSM 1-5 group currently uses social media services, while only 6% say they use mobile Internet.

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