South Africa's smartphone market recorded a healthy increase in sales in the second quarter of 2026, despite rising device prices.
Despite a surge in prices, data from market research firm Omdia showed that smartphone sales in South Africa increased by 17% year-on-year in the second quarter of 2026.
The performance bucked a broader sales decline across Africa, where overall shipments fell 7% due to rising device price pressures.
“The impact was most pronounced in the sub-$100 segment, which has long served as the entry point to digital connectivity for Africa’s emerging middle class.
“Shipments in the segment fell 34% YoY, reflecting a decline of nearly three million units.” Omdia attributed the drop to rising memory costs and the AI-driven supply chain shift.
The decline was especially noteworthy as it broke a 12-quarter growth streak. “We’re witnessing a forced upward shift in the African market,” Omdia principal analyst Manish Pravinkumar said.
“Vendors can no longer profitably manufacture $75 smartphones, while consumers who need connectivity are increasingly having to stretch their budgets towards $200+ devices”.
The average selling prices of smartphones sold in Africa increased by $41 year-on-year to $202, reversing a sharp price reduction in the previous year.
Omdia said the increase in South Africa was due to stronger consumer purchasing power and the market’s continued transition to 5G devices.
“This strengthened its importance for vendors such as Honor and Samsung, as more consumers purchased devices above the entry-level segment,” Omdia said.
Samsung and Honor also posted the best overall sales growth on the continent. Samsung’s sales increased by 15% from 3.4 million to 3.9 million units, bumping its market share from 18% to 22%.
Omdia said Samsung benefited from the trend, supported by strategic inventory management that maintained multi-month stock buffers for key devices such as the Galaxy A07 and A17.
Honor’s smartphone sales increased from around 800,000 to 900,000 units, an improvement of 13%. That boosted its market share from 4% to 5%.
Omdia attributed the growth to Honor’s focus on the more resilient $300+ mid-to-high-end segment. “This reduces its exposure to component restraints affecting the entry-tier,” the firm said.
South Africa accounted for roughly 60% of Honor’s regional volumes. The company has frequently reported exceptional growth in the local market and has set its sights on Samsung’s crown.
Xiaomi and Oppo posted the sharpest declines of 30% and 25%, respectively. Low-end brand Transsion also took a hit, with sales slumping 14%.
The company sells smartphones under the Tecno, Infinix, and iTel brands. However, it maintained its overall market share lead, accounting for 47% of all smartphones sold.
Omdia expected an even bigger decline of 26% in sales across Africa for the year, which would also mark the end of a 3-year growth streak.
Pravinkumar argued that device financing would become an increasingly important part of vendors’ affordability strategies, especially with higher device prices making upfront costs harder to absorb.
“Transsion, already one of the leading players in device financing across Africa, is looking to deepen this capability alongside its broader portfolio strategy,” Pravinkumar said.
“Xiaomi is increasingly exploring financing partnerships to broaden access to higher-value devices and support growth beyond the entry tier.”
Pravinkumar said the next phase of competition will depend on how effectively vendors can balance affordability, volume, and profitability.
Several companies in South Africa have already introduced innovative rental products to make smartphone access more affordable. Major players include Pep’s FoneYam, PayJoy, and MyFlex.
The offerings incorporate Samsung’s remote software management tool, Knox, which enables financiers to disable certain features in the event of non-payment.
The mechanism improves payment compliance among customers without the required credit history for conventional smartphone contracts.
