South African consumers spent nearly R167.5 billion on fast-moving consumer goods (FMCG) in Q3 2025; however, the technology and durables (T&D) sector continued to struggle, due to a downturn in smartphone sales.
This is according to the State of the Retail Nation report, by NielsenIQ (NIQ) South Africa, for the third quarter of 2025.
The analysis, which tracks sales from the T&D and FMCG markets, shows robust growth in retail sales, value and volumes in SA for the third quarter, with a year-over-year value growth of 7.1%, and unit sales increasing by 8.7%.
The T&D sector, meanwhile, continued to show sluggish growth, as a result of declining telecoms device sales weighing on the sector.
Total T&D spending fell 3% year-on-year to R21.5 billion, suggesting consumers are rebalancing their spending priorities, it says.
The T&D market includes mobile phones, washers, dryers, refrigerators, air-conditioners, computers, televisions, information communication technology equipment and vehicles.
According to the report, in the T&D market, consumers continued to spend cautiously with a clear pivot toward home-centric essentials and productivity tech, but away from discretionary categories. Sales value in categories such as panel televisions and smartphones has fallen or stagnated due to consumers opting for lower-cost products.
“Consumers are replacing IT products for the first time since they invested in digital work tools during the COVID-19 pandemic,” says Zak Haeri, MD of NIQ South Africa.
“A stable rand and fierce price competition, meanwhile, held sales value down even as unit sales increased. A slower smartphone replacement cycle appears to have become the new normal in the absence of large technological innovations or compelling new features.”
The smartphone category saw a 5% drop in value and an 8% increase in unit sales in the third quarter of the year as longer replacement cycles and a lack of product innovation dampened demand. Affordability drove the prepaid market, with average prices falling 9% and unit sales increasing 11.6%, says NielsenIQ.
The postpaid market is showing encouraging signs of recovery into the last quarter.
However, Omdia’s latest research notes Africa’s smartphone shipments surged 24% year-on-year to 22.8 million units in Q3 2025, marking a return to double-digit growth after five quarters of slowdown.
“The rebound outpaced the modest recovery in the global smartphone market, driven by stronger demand in key markets, currency stability, rising financing adoption and improving retail activity,” says Omdia.
According to NielsenIQ, the panel television market remained flat for the period, with sales value decreasing 1% and unit sales going up 1.4%. New Chinese manufacturers continued to gain market share at the expense of the established players. Office machines, meanwhile, dropped 23% in value and 30% in unit sales, confirming a long-term shift to digital workflows.
“In the T&D sector, we can expect some turbulence as rising component prices start to filter through to the South African market. With consumers timing their purchases strategically, manufacturers and retailers must lead with value,” notes Haeri.
“This means delivering innovation that resonates with today’s purpose-driven consumers. The opportunity lies in products that improve performance, enhance everyday experiences and offer visible return on investment.”
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