Smartphone revenues grow 3% in Q1 2019 - GfK point-of-sales data
31 May 2019
Smartphone unit sales in South Africa declined by about 7% year-on-year in the first quarter of 2019, while the value of the smartphone market climbed nearly 3% to around R8.6bn as shoppers splashed out on higher-end models with larger screen sizes. That's according to newly released point-of-sale tracking data from GfK South Africa's Weekly Monitor, which indicates that the consumer technical goods market as a whole grew 1.6% compared to the same quarter in 2018.
The GfK data shows that high-end devices are now driving the growth of the smartphone market, with average sales prices up 11% year-on-year for the quarter. The feature phone segment enjoyed a slight resurgence, with unit sales up 4% year-on-year. Media tablet unit sales meanwhile plunged by around 22%, contributing to an 8% year-on-year fall in information technology revenues during the first quarter of 2019.
“The smartphone market showed a marked slowdown in the first quarter of 2019, with fewer than 3 million units sold during this timeframe,” says Kali Moahloli, Commercial Head for Market Insights at GfK South Africa. “Though absolute unit sales numbers are down, the migration of users towards large-screen devices with high-end features has driven revenue growth for smartphone manufacturers and retailers. With smartphones emerging as the primary internet access device, higher-end consumers are seeking a better user experience for web browsing, video and other applications.”