The first half of 2017 saw an increase in smartphone sales in SA of nearly 20% compared to the same time last year.
This is according to point-of-sale data from market research firm GfK South Africa.
The data shows retail growth in SA's mobile computer market flattened out, though the market is performing reasonably well considering the tight economy. However, the tablet market shrunk by about 40% in the first half of 2017.
Mobile phone sales decreased by 23% for January to June. Smartphones accounted for 64% of mobile devices sold in the first half of 2017, while feature phones comprised the balance. By comparison, the split was 58% smartphones and 42% feature phones in the 2016 calendar year.
"Growth in South Africa's mobile phone market is predominantly driven by the introduction of extremely low-cost smartphones," says Berno Mare, product manager of IT, office and photo at GfK South Africa.
"This is fuelling the transition from traditional mobile phones to smartphones. Another trend sees consumers enthusiastically adopt larger screen sizes of five inches and above.
"Brand loyalty and design are the main drivers in the premium market. Features are secondary in consumer purchasing decisions because most premium phones have excellent spec levels and similar functionality. In the credit-driven sector, the smartphone is a critical status symbol and screen size is a major factor in smartphone purchasing decisions."
Notebooks experienced flat growth for the first half of 2017, with around 295 000 units sold through retail during the period. The same number was sold in the beginning half of last year. The same period in 2015 saw 360 000 units sold.
Tablet computer retail sales, meanwhile, dropped from 862 000 units in the first half of 2016 to around 540 000 for January to June 2017.
"Growth in South Africa's consumer computing devices market has flattened in recent years, partly because of economic conditions, partly because the weak rand has pushed prices up, and partly because of high penetration of these devices into the segments of the market that can afford them. The smartphone market, however, remains buoyant as consumers migrate from feature phones," says Nicolet Pienaar, business group manager: IT and telecoms at GfK South Africa.
Pienaar says tablets are seen as a secondary support device, used to consume media rather than create content. As a result, this category is feeling the pressure of a tight economy more than mobile computers and smartphones, which many consumers regard as essentials.
"A trend we have noted in Europe is that people prefer to use their smartphones to hail an Uber or take notes in a meeting because their handsets are right at hand - they don't want to take out a tablet or hybrid. The same trend is taking place here, too."
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