Connect with us

Featured

Smartphones still growing strongly in SA

Published

on

Retail growth in SA’s mobile computer market has flattened out, though the market is performing reasonably well considering the tight economy, according to point of sale data from market research firm, GfK South Africa.

GfK South Africa’s data shows that mobile phone sales has decreased by 23% for January to June 2017, compared to the same period in 2016. Smartphone unit sales has increased 17% in the same timeframe. Smartphones accounted for 64% of mobile devices sold in the first half of 2017, while feature phones comprised the balance. By comparison, the split was 58% smartphones and 42% feature phones in the 2016 calendar year.

Notebooks experienced flat growth for the first half of 2017, with around 295,000 units sold through retail during the period. This follows a decline of more than 20%, from 360,000 units sold through in January to June 2015 to about 295,000 units in January to June 2016. Tablet computer retail sales, meanwhile, have dropped from 862,000 units in the first half of 2016 to around 540,000 for January to June 2017.

Smartphones buoyant in a flat market

Says Nicolet Pienaar, Business Group Manager: IT and Telecoms at GfK South Africa: “Growth in South Africa’s consumer computing devices market has flattened in recent years, partly because of economic conditions, partly because the weak rand has pushed prices up, and partly because of high penetration of these devices into the segments of the market that can afford them. The smartphone market, however, remains buoyant as consumers migrate from feature phones.

“We are also seeing cellular networks, manufacturers and retailers come up with innovative ways to drive sales volumes. For example, some smartphone and PC makers continue to focus on laybys and store credit to make notebooks, tablets and smartphones more affordable to the first-time buyer. Some vendors are also seeking to increase the value of the units they sell—such as notebook manufacturers who have opened new markets such as the premium R40,000-plus gaming notebook.”

Adds Berno Mare, Product Manager: IT, Office and Photo at GfK South Africa: “Growth in South Africa’s mobile phone market is predominantly driven by the introduction of extremely low cost smartphones. This is fuelling the transition from traditional mobile phones to smartphones. Another trend sees consumers enthusiastically adopt larger screen sizes of five inches and above.

“Brand loyalty and design are the main drivers in the premium market. Features are secondary in consumer purchasing decisions because most premium phones have excellent spec levels and similar functionality. In the credit-driven sector, the smartphone is a critical status symbol and screen size is a major factor in smartphone purchasing decisions.”

Tablets feel the pressure

Commenting on the tablet market, Pienaar says that tablets are seen as a secondary support device, used to consume media rather than to create content. As a result, this category is feeling the pressure of a tight economy more than mobile computers and smartphones, which many consumers regard as essentials.

Says Pienaar: “A trend we have noted in Europe is that people prefer to use their smartphones to hail an Uber or take notes in a meeting because their handsets are right at hand – they don’t want to take out a tablet or hybrid. The same trend is taking place, here, too.”

There is fierce competition in the entry-level tablet market, thanks to a growing choice of brands as well as telecoms networks offering contract deals. However, the professional segment – including slate and hybrid form factors – is struggling because prices are too high for mass market appeal.

In the notebook market, a volatile exchange rate and higher component prices are making it difficult for manufacturers to keep price points low for entry-level devices. The industry is focusing on combining spec configurations that allow for aggressive pricing. As a result, there is a little innovation in the low-end of the market, with some devices leveraging older processors. In the premium market, thin form factors, SSD and other innovative features are driving growth.

Spurred by innovations, such as virtual reality, artificial intelligence, smart home functionality, mobile payments and mobile health, smartphones are going to gain further relevance for consumers in premium segments in the next year to two. Meanwhile, low-cost smartphones will continue to grow as users migrate from feature phones, especially younger people who see connectivity as a life essential.

Featured

News fatigue shifts Google searches in SA

Google search trends in South Africa reveal a startling insight into news appetite, writes BRYAN TURNER.

Published

on

The big searches of the year no longer track the biggest news stories of the year, suggesting a strong dose of news fatigue among South Africans.

“People ask, why are the Guptas not on the list of Google’s top searches?, says Mich Atagana, head of communications and public affairs at Google South Africa, “The Guptas are not on the list because South Africans are not actually that interested. South Africans are looking for things they don’t know. From a Gupta point of view, we’ve been exhausted by the news and we know exactly what is going on.”

Google South Africa announced the results of its 2018 Year in Search, offering a unique perspective on the year’s major moments.

“Four years ago, there were almost no South Africans on the personalities list,” says Atagana. “Over the years, South Africans have gotten more interested in South Africa, in searching on Google.”

That isn’t to say that international searches – like Meghan Markle – are not heavily searched by South Africans. But  they feature lower down on the lists.

From the World Cup to listeriosis, Zuma and Global Citizen, South Africans use search to find the things they really need to know.

These are the main trends revealed  by Google this week:

Top trending South African searches

  1. World Cup fixtures
  2. Load shedding
  3. Global Citizen
  4. Zuma
  5. Winnie Mandela
  6. HHP
  7. Listeriosis
  8. Black Panther
  9. Meghan Markle
  10. Mac Miller

Trending personalities

  1.    Jacob Zuma
  2. Cyril Ramaphosa
  3. Sbahle Mpisane
  4. Kevin Anderson
  5. Malusi Gigaba
  6. Ashwin Willemse
  7. Patrice Motsepe
  8. Cheryl Zondi
  9. Shamila Batohi
  10. Mlindo the Vocalist

Top Questions

  1. How did Avicii die?
  2. How old is Pharrell Williams?
  3. What is listeriosis?
  4. What is black data?
  5. How old is Prince Harry?
  6. How much are Global Citizen tickets?
  7. How to get pregnant?
  8. What time is the royal wedding?
  9. What happened to HHP?
  10. How old is Meghan Markle?

Top ‘near me’ searches

  1. Jobs near me
  2. Nandos near me
  3. Dischem near me
  4. McDonalds near me
  5. Guest house near me
  6. Postnet near me
  7. Steers near me
  8. Spar near me
  9. Debonairs near me
  10. Spur near me

Top women

  1. Winnie Mandela
  2. Meghan Markle
  3. Sbahle Mpisane
  4. Aretha Franklin
  5. Khloe Kardashian
  6. Sophie Ndaba
  7. Cheryl Zondi
  8. Demi Lovato
  9. Lerato Sengadi
  10. Siam Lee

The Year In Search 2018 minisite can be found here.

Continue Reading

Featured

Smartphones dip in 2018

According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, worldwide smartphone shipments are expected to decline by 3% in 2018 before returning to low single-digit growth in 2019 and through 2022.

Published

on

While the on-going U.S.-China trade war has the industry on edge, IDC still believes that continued developments from emerging markets, mixed with potential around 5G and new product form factors, will bring the smartphone market back to positive growth.

Smartphone shipments are expected to drop to 1.42 billion units in 2018, down from 1.47 billion in 2017. However, IDC expects year-over-year shipment growth of 2.6% in 2019. Over the long-term, smartphone shipments are forecast to reach 1.57 billion units in 2022. From a geographic perspective, the China market, which represented 30% of total smartphone shipments in 2017, is finally showing signs of recovery. While the world’s largest market is still forecast to be down 8.8% in 2018 (worse than the 2017 downturn), IDC anticipates a flat 2019, then back to positive territory through 2022. The U.S. is also forecast to return to positive growth in 2019 (up 2.1% year over year) after experiencing a decline in 2018.

The slow revival of China was one of the reasons for low growth in Q3 2018 and this slowdown will persist into Q1 2019 as the market is expected to drop by 3% in Q4 2018. Furthermore, the recently lifted U.S. ban on ZTE had an impact on shipments in Q3 2018 and created a sizable gap that is yet to be filled heading into 2019.

“With many of the large global companies focusing on high-end product launches, hoping to draw in consumers looking to upgrade based on specifications and premium devices, we can expect head-to-head competition within this segment during the holiday quarter and into 2019 to be exceptionally high,” said Sangeetika Srivastava, senior research analyst with IDC’s Worldwide Mobile Device Trackers.

Though 2018 has fallen below expectations so far, the worldwide smartphone market is set to pick up on the shift toward larger screens and ultra-high-end devices. All the big players have further built out their portfolios with bigger screens and higher-end smartphones, including Apple’s new launch in September. In Q3 2018, the 6-inch to less than 7-inch screen size band became the most prominent band for the first time with more than four times year-over-year growth. IDC believes that larger-screen smartphones (5.5 inches and above) will lead the charge with volumes of 947.1 million in 2018, accounting for 66.7% of all smartphones, up from 623.3 million units and 42.5% share in 2017. By 2022, shipments of these larger-screen smartphones will move up to 1.38 billion units or 87.7% of overall shipment volume.

“What we consider a so-called normal size smartphone has shifted dramatically in a few short years and while we are stretching the limits with bezel-less devices, the next big switch to flexible screens will test our imaginations even further,” said Melissa Chau, associate research director with IDC’s Worldwide Mobile Device Trackers. “While this category of device is still nascent and won’t see major adoption in the year ahead, it’s exciting to see changes to the standard monoblock we are all so used to carrying.”

Platform Highlights

Android: Android’s smartphone share will remain stable at 85% throughout the forecast. Volumes are expected to grow at a five-year compound annual growth rate (CAGR) of 1.7% with shipments approaching 1.36 billion in 2022. Android is still the choice of the masses with no shift expected. Android average selling prices (ASPs) are estimated to grow by 9.6% in 2018 to US$258, up from US$235 in 2017. IDC expects this upward trajectory to continue through the forecast, but at a softened rate from 2019 and beyond. Not only are market players pushing upgraded specs and materials to offset decreasing replacement rates, but they are also serving the evolving consumer needs for better performance.

iOS: iOS smartphones are forecast to drop by 2.5% in 2018 to 210.4 million. The launch of expensive and bigger screen iOS smartphones in Q3 2018 helped Apple to raise its ASP, simultaneously making it somewhat difficult to increase shipments in the current market slump. IDC is forecasting iPhone shipments to grow at a five-year CAGR of 0.1%, reaching volumes of 217.3 million in 2022. Despite the challenges, there is no ambiguity that Apple will continue to lead the global premium market segment.

Continue Reading

Trending

Copyright © 2018 World Wide Worx