Longer upgrade cycles, price pressure hit smartphones

South Africans spent more on telecoms products in the first half of 2026, spending R347.7 billion on fast-moving consumer goods despite buying fewer units. This trend, according to NielsenIQ's latest "State of the Retail Nation" analysis, reflects affordability pressures and longer replacement cycles that have reshaped consumer technology spending.

The tech and durables (T&D) market faced challenges as consumer caution and longer replacement cycles dampened sales. Despite a decline in unit sales of 2.6% year-over-year, telecoms, the largest category, saw a 1.1% increase in sales value. Average selling prices for telecoms rose by 9.8%, indicating consumers are purchasing fewer telecoms units but spending more per unit.

The report suggests that consumers are becoming more selective about telecoms purchases, with those who buy potentially spending more on individual products when they see a clear practical benefit. Smartphone demand remained relatively resilient, with growth in both prepaid and postpaid smartphone value suggesting that some consumers are trading up, even as overall telecoms unit sales declined.