SA bucks Africa’s smartphone market downturn

South Africa's smartphone market experienced a growth rate of 17% year-on-year in Q2 2026, defying a declining trend across the African continent. According to Omdia, shipments of smartphones in Africa dropped by 7% year-on-year during the same period, marking the first annual decline in three years. Omdia predicts a 26% market contraction for the continent in 2026.

South Africa stood out as the top performer among major markets due to stronger consumer purchasing power and the shift towards 5G smartphones. This growth creates a significant opportunity for vendors like Samsung and Honor, who are seeing consumers opt for devices priced above the traditional entry-level range.

However, the African market is grappling with rising costs, with shipments of smartphones under $100 falling by 34% year-on-year in Q2 2026, a decline of nearly three million units. Factors such as higher memory costs and supply chain pressures linked to the demand for AI-capable devices are contributing to the pressure on entry-level smartphones.

Manish Pravinkumar, principal analyst at Omdia, observed that the market is experiencing a shift towards higher-priced devices. The average selling price of a smartphone in Africa increased by $41 year-on-year to $202, a reversal of the price cuts witnessed in the same quarter last year. This price hike has varied across the continent, with Nigeria recording an 11% decline in shipments due to higher prices, Egypt experiencing a 26% drop following price increases, and Kenya seeing a 15% decline, particularly affecting the sub-$150 segment.

These price increases are reshaping the competitive landscape. Transsion, which owns brands such as Tecno, Infinix, and iTel, remains the market leader but saw a 14% drop in shipments as it is heavily reliant on the sub-$100 segment. Samsung's shipments rose by 15%, aided by its inventory management for key models like the Galaxy A07 and A17.

Honor also saw growth, driven by its focus on smartphones priced above $300, making up about 60% of its regional volumes in South Africa. Xiaomi and Oppo reported a 30% and 25% decline in shipments, respectively, as they adopt a more cautious approach to the entry-level market due to rising component costs. Omdia expects financing options to become more critical for consumers who can't afford high-priced devices upfront.

The global smartphone market is also facing challenges, with IDC forecasting a 13.9% decline in shipments to 1.09 billion units in 2026, the steepest annual drop in history.