South African smartphone market pain

Due to South Africa’s smartphone market still being in its developmental stages and consumers facing numerous economic headwinds, brands have found it particularly challenging to enter and establish themselves.

This is according to Oppo South Africa, which MyBroadband asked about its experience launching and competing in South Africa.

Samsung currently dominates the market, holding a 52.57% market share, according to GlobalStats Statcounter.

The South Korean manufacturer overtook Nokia in December 2014, when the brand that once dominated dropped from its lion’s share of 68% two years earlier to roughly 27%.

Apple currently holds second place with 16.6%, followed by Huawei at 10.71%, and Xiaomi at 3.49%.

Oppo South Africa, a Chinese smartphone manufacturer with a 3.29% market share, told MyBroadband that the South African landscape can be particularly challenging because consumers are highly value-conscious.

“Consumers prioritise measurable technical specifications, such as battery life, camera resolutions, and storage capacity,” Oppo said.

In addition, Oppo, which focuses on the mid-to-premium segment, comprising roughly 22% of the market, said economic pressures also play a significant role in consumer buying behaviour.

Because of the strain on the average household purse, it said 85% of devices priced above R3,000 are sold through post-paid contracts, as consumers can’t afford to buy in cash.

Therefore, Oppo believes that how brands engage with retailers and operators plays a significant role in shaping the competitive landscape, as financial incentives are vital in driving sales.

The decline in the number of post-paid users in the country further emphasises these economic pressures.

“The post-paid market has experienced a significant decline, shrinking by 16% in 2024 compared to 2023, and another 16% from January 2024 to January 2025,” Oppo said.

“This shift reshapes industry dynamics, impacting manufacturers and retailers as consumer spending habits evolve.”

Oppo said 80% of sales occur in the prepaid segment.

MyBroadband also asked Oppo about the differences between the South African market, the rest of Africa, and China.

The manufacturer said South Africans attempt to get the best specs that fit within their budget, meaning that visible features are more influential to the buyer than how they perceive the brand.

On the other hand, according to Oppo, the focus in many other African countries is on brand strength and marketing communications to attract consumers.

This is similar to its domestic market. However, China is far more mature and competitive.

“Chinese consumers place greater importance on reputation, after-sales support, and seamless integration with other devices and services,” Oppo said

“While hardware specifications still matter, real-life usability, software optimisation, and AI-driven enhancements often precede raw numbers.”

Oppo argued that there are commonalities between the South African and Chinese markets, with consumers sharing an appreciation for premium-looking smartphones that are aesthetically pleasing.

The graph below shows the change in smartphone market share from the beginning of 2010 until the end of 2024.

Oppo said its strategy to enhance its market share South Africa is centred on retaining customers and ensuring that their next device is an Oppo.

On the other hand, market leader Samsung attributes its success in the country to its wide range of devices designed to cater to the needs of different segments.

“We have ensured that our smartphones are designed and built to cater to different needs across all segments, always with our consumer in mind,” Samsung told MyBroadband in 2024.

These include entry-level, mid-range, and flagship devices. It also offers customers attractive trade-in deals and extensive local support.

“We have established our trade-in programme and continuously have offers in the market on the S24 Series, Z Series, and even the A55 5G,” it said.

“This really makes these desirable smartphones so much more accessible and affordable for consumers who want the latest tech whilst being spend-savvy.”

Samsung’s Galaxy A series includes various mid-range and budget devices that balance software support, performance, and affordable pricing.

While Apple also sells a mid-range device, the 2022 iPhone SE, it is relatively expensive compared to other options in the segment.

It also lacks features like a large borderless display and powerful camera sensors.