The smartphone sector in South Africa has seen Samsung keep its leading position, but brands like HONOR, Huawei, and TECNO have begun eating into its market share. HONOR beat everyone else for the title of the quickest growing brand, and for the first time, occupied the second spot in Q3 2023.

South African smartphone shipments in Q3 2023 rose by 73% YoY and 44% QoQ, hitting levels unseen since 2021 prior to the global downturn triggered by macroeconomic issues as per Counterpoint Research’s Market Monitor Service's findings. The migration from feature phones to smartphones, boosted by Chinese manufacturers targeting entry level price segments, benefitted the market.

Speaking about the market trends, Yang Wang, Senior Research Analyst, noted the rapid growth of the South African market, especially as major Chinese brands have turned their attention towards it. With the country's economy recovering post-crisis, Chinese manufacturers are actively trying to tap into the demand. HONOR's entry is seen as particularly significant, as it intensifies the competition, particularly against Xiaomi and Samsung in the lower and middle price segments.

Most leading smartphone brands reported a double-digit YoY growth for the quarter, and are quickly trying to introduce new models to leverage the revival in demand. Fierce competition from other Chinese players didn't prevent Samsung from maintaining its lead, primarily supported by its A-series and its top performing foldable devices in the high-end market.

HONOR surpassed Xiaomi to become South Africa’s second-largest smartphone brand during the quarter, mainly due its aggressive marketing initiatives and broader product availability. In the same quarter, TECNO also ventured into the high-end segment with its HONOR 90 5G and 90 Lite 5G models. Xiaomi, despite witnessing an increase in its market share during the quarter, slipped to third place.

Transsion Group also holds a strong presence in the market, deriving much of its success from the demand for TECNO and itel brands. Yet Infinix has failed to establish itself so far in the market. TECNO and itel are concentrating on the lower to mid- and lower-end segments respectively, where they lead. TECNO's Pop and Pova series, and itel's A series were the key volume drivers.

Despite the ongoing energy crisis, major economic indicators in South Africa are stabilizing thanks to easing inflation and unemployment rates. Recognizing the potential, Chinese manufacturers are targeting the MEA markets, especially South Africa which stands out due to its higher income levels and better connectivity infrastructure. There is an expected surge in the high-end segment, with Samsung and Apple looking to maximize their benefits. Counterpoint Technology Market Research, a global firm focused on products in the technology, media, and telecom sector, offers detailed insights into mobile and technology markets.