China's smartphone firms target South Africa
China's smartphone makers are prioritising South Africa in their plans for worldwide expansion. Chinese brands such as Meizu, Xiaomi, Huawei, Lenovo, ZTE, Hisense and TCL Mobile are targeting buyers of medium to low-end phones with good-value devices that have high-end features. These phones are being seen as alternatives to the major brands, which are two or three times more expensive. Low pricing has boosted smartphone adoption in South Africa, with the International Data Corp reporting that phones costing under $100 account for over two-thirds of South African Android phone sales.
Mobile handsets and smartphones sit on display inside an MTN Group Ltd. telecommunications store in Hyde Park District of Johannesburg, South Africa. (Photo : Getty Images)

Various smartphone manufacturers from China have developed their own aggressive strategies for expansion into the rest of the world, and they are prioritizing South Africa.



The catalogues of cellphone network retailers and operators in South Africa show that there is a growing number of thriving and unheard-of brands that are competing with the giants such as Apple and Samsung. The latest entrant is Meizu, joining the Chinese familiar brands Xiaomi, Huawei, Lenovo, ZTE, Hisense and TCL Mobile.



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Smartphones from Chinese manufacturers have highly attractive features while offering most value for money. The companies are mainly targeting the audience that buys medium to low-end smartphones. They make high-end features available on mid-range phones, thus making their smartphone a viable alternative to the big brands which costs two or three times higher.



Low pricing has accelerated the smartphone adoption in South Africa. Cellphone network operators have seen a double-digit increase when it comes to smartphone usage. The International Data Corp said that low-priced smartphones that cost less than $100 account for more than two-thirds of South African Android smartphone sales.



IDC said in a report: “This space has evolved after top-end sales became well-established in the market courtesy of the country's substantial post-paid segment, a rare feature of the operator environment in Africa.”



"The main factor driving the uptake of Chinese handset brands is value for money, rather than low cost in itself," said Arthur Goldstuck, the managing director of World Wide Worx, a research company.



Jay Chetty, the general managing director of MTN, a South Africa-based multinational mobile telecommunications company, said, "The popularity of these devices is growing--largely because of their costs--as they enable more South Africans to get into the smartphone environment."



Between 11 percent and 15 percent of Chinese smartphones in South Africa are running on MTN's network.



Not all Chinese smartphone manufacturers are succeeding in South Africa though. According to Goldstuck, Xiaomi made a huge impact on the global smartphone market, but it will need a substantial adaptation of its online marketing model for the African market.



Other Chinese players like Meizu and Oppo remains unproven in this market.



Besides the product mix, South Africa is favoring economically priced phones from China due to currency challenges and macroeconomic factors.

