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South Africa’s unmatched love for Nokia and Blackberry phones let out

Phone-makers Nokia and RIM have both come under significant financial pressure in the recent month. However, this does not seem to be the trend in South Africa as the companies’ brands have remained popular, according to a study by research firm World Wide Worx.

The Finnish mobile phone-maker Nokia remains the most popular cellphone brand among South Africans aged 16 and over, living in cities and towns, according to the study.
It is reported that Nokia maintained its market share over the past 18 months in South Africa, which was 51 percent at the end of 2010 and now precisely 51 percent in mid-2012.
It is expected to remain the number one cellphone brand in South Africa through to the end of 2013 although with a slightly diminished market share.

Blackberry’s Rise
During the same period, BlackBerry-maker RIM has seen its market share rise from 4 percent to 18 percent, drawing level with Samsung, which has fallen from 28 percent to 18 percent in the last 18 months.
“As in other developing markets, the demise of BlackBerry in this country remains a myth,” says Arthur Goldstuck, managing director of World Wide Worx.
“BlackBerry’s continued strength lies in its appeal to the younger market, with the Curve models maintaining a ‘cool’ image. In the 16 to 25 age group, the brand has 28 percent market share.” Goldstuck explained.
A further 16 percent of cellphone users say they intend to buy a BlackBerry next. Actual behaviour tends to fall short of intentions although this still suggests strong brand momentum.

Blackberry Vs Samsung Galaxy S3
Despite the wealthy top end of the market abandoning BlackBerry for the iPhone and the new Samsung Galaxy S3, this does not translate into significant market share for Apple or Samsung, as BlackBerry remains dominant in the smartphone segment.
Industry data collected by World Wide Worx shows that, of around 10 million smartphones sold in South Africa, about 4.8 million are BlackBerry devices. Nokia is a close second, with around 4 million smartphones sold.

Operating Systems
These are mostly devices using Nokia’s Symbian operating system, while its new Lumia phones using Microsoft’s Windows Mobile have not yet made a significant impact.
Smartphones running Google’s Android operating system – mostly from Samsung and HTC – amount to about 800 000 devices, while the iPhone has moved fewer than 400,000 units in South Africa.
The Mobility 2012 data confirms that the iPhone remains a toy of the elite in South Africa, maintaining only its 1 percent market share of 18 months ago.

Future Brand Momentum
Respondents to the survey gave the iPhone the greatest future brand momentum, with purchase intentions suggesting a sixfold increase in market share, to 6 percent, in the next 18 months.
“This is double the brand momentum indicated for the iPhone at the end of 2010, but the intended purchasing activity at the time, which should have given Apple 3 percent market share, simply did not materialize,” says Goldstuck.
“This shows the extent to which the iPhone remains an aspirational phone, but one that is out of reach, while the BlackBerry represents a reachable aspiration,” he continued.
Another dramatic shift is evident in Motorola’s market share: it fell from 11 percent to 2 percent in 18 months, and dropped from number 3 rank to number 5. LG slipped one position in rank to number 4, but maintained its 5 percent market share.

HTC, the New Comer
A surprise newcomer, the Chinese ZTE brand, also claimed 2 percent market share, thanks to low-cost devices that offer a powerful range of features. Sony-Ericsson, now carrying only the Sony brand, dropped from 2 percent to 1 percent market share, while HTC remained steady at 1 percent.
“HTC market share is expected to double in the next 18 months, although off a low base,” says Goldstuck.
“But the prospects for Motorola, LG and Sony are bleak: all three are expected to drop below 1 percent, unless something drastic happens to revitalise the brands.” he concluded.
The Mobility 2012 project comprises two reports, namely The Mobile Consumer in SA 2012, comprising cellphone usage and banking trends, and The Mobile Internet in SA 2012, exploring online and data trends. It is based on face-to-face interviews with a nationally representative sample of South African adult cellphone users living in cities and towns, conducted in June 2012.

The Mobile Consumer in SA 2012 report was released this week as part of the recently unveiled Mobility 2012 research project that is conducted by World Wide Worx with support from First National Bank.

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