Counterpoint Research reports that the shipment of smartphones in South Africa has witnessed a significant increase of 73% year-on-year in the last quarter. There was also a quarterly rise of 44%. These rises are credited to the aggressive product introductions by major Chinese manufacturers in South Africa, the continent's most developed economy.

The focus of these Chinese manufacturers appears to be on Africa and the Middle East markets broadly, but South Africa has caught their attention due to its better connectivity infrastructures and a greater level of income. This makes the South African smartphone market particularly attractive.

Following the latest spectrum auctions in 2022, mobile operators have committed to boost both 4G and 5G coverage across more regions of the country, with a particular focus on enhancing the connectivity in rural, peri-urban and urban areas.

Companies including HONOR, Xiaomi, and Transsion, Chinese smartphone manufacturers, are launching a range of products at lower price points to encourage users to replace their basic feature phones. Counterpoint added that the market growth in South Africa is likely to also be driven by the trend towards premiumisation and the growing high-end sector.

They predict that Samsung and Apple are likely to be most benefitted by this trend. There was a significant surge in smartphone shipments just preceding the start of the global economic slowdown in the reported quarter, marking the highest level of shipments since 2021.

Yang Wang, Counterpoint's senior research analyst, stated that South Africa is considered one of the fastest-growing smartphone markets in the Africa and the Middle East region. He added that local economic recovery coupled with aggressive marketing strategies by Chinese original equipment manufacturers is expected to further fuel market demand.

Counterpoint further said that the entry of HONOR in the South African market has increased the competition in the mid and low-tier sectors against Xiaomi and Samsung. However, despite the heightened competition, Samsung continued to dominate the market in the last quarter supported by its A-series devices.