The local technical consumer goods market moved into positive ground during the last quarter of 2011, buoyed by sales from the telecommunications sector, says research company GfK.
The firm's latest technical market index, which tracks sales through tills, shows the total technical goods market in SA recorded growth of 6.2%, bolstered by the telecoms sector, which gained 15.1% year-on-year.
The entire sector was worth R11.18 billion in the fourth quarter of 2011, a gain of 6.2% from the last quarter of 2010. However, the sector lost 0.4% in sales value, to R37.6 billion, during the full 2011 year, when compared with 2010.
GfK says this was still a strong performance, considering market conditions and economic pressures. In addition, 2010 benefited from the Soccer World Cup, says the research company.
Growth in telecoms did not show any signs of abating in the last quarter of the year, the company adds. “The overall mobile and smartphone market in particular continued to exhibit what has already been described as impressive growth in SA.”
The telecoms sector grew 15% in the last quarter, to reach R14 billion in sales during the year. “Mobile handsets continue to be the main contributor of growth,” and accounted for more than 98% of the sector, it says.
“While it is anticipated that sales will slow down at the beginning of 2012, the market is still to experience the tipping point. At this stage, there is no sign of that happening, which augurs well for mobile manufacturers in SA.”
The overall consumer IT sector lost 3.9% during 2011, compared with 2010, dropping to R3.6 billion. GfK says although the IT market lost R8 million in sales between the third and fourth quarter, this is a smaller drop than between the second and third quarters.
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