GMCS GLOBAL FOOTPRINT GMCS SOUTH AFRICA
6 28 44 150 1 00016-45Continents Countries
Respondents Nationally representative respondents
Age of respondents
BelgiumDenmarkFinlandGermanyIrelandItalyKenyaLuxembourgNetherlandsNorwaySaudi ArabiaSouth AfricaSpainSwedenTurkeyUAEUK
ArgentinaBrazilCanadaColombiaMexicoUSA
AustraliaChinaIndiaJapanSouth Korea
APAC
EMEAAmericas
Foreword 04
Sample Overview 05
Device Market 06
Connectivity 16
Apps/Services 22
Mobile Gaming 26
Digital Entertainment 30
Mobile Payments/ E-Commerce 34
Privacy 38
Contacts 41
CONTENTS
At the end of his visit to Africa on 28 November 2019, Jack Dorsey, the CEO of Twitter and Square, remarked that, “Africa will define the future.” The future that awaits will build upon the foundation of today and the mobile device is expected to continue playing a critical role in unlocking new opportunities. In this Global Mobile Consumer Survey (GMCS) South Africa Cut, key trends and developments, as reported by South African mobile consumers, are highlighted.
Smartphones remain consumers’ favourite device and have become a basic requirement for participation in the digital era. This trend is largely driven by affordability and convenience. In the past year, there has been a decline in the popularity of tablets. This trend can be explained by the continued improvement in smartphone screen size, processing power and prices. The top manufacturers of phones continue to leverage their strong brands and relationships with service providers to dominate the market. The launch of locally assembled phones may impact on pricing, distribution dynamics and customer choice; the extent of this impact remains to be seen.
Most consumers replace their phones after two years, in line with standard contract upgrade cycles. However, this seems to be true for non-contract subscribers as well, which reflects the influence service providers have on shaping consumer behaviour. Used phones are usually handed down to other family members, thereby expanding smartphone penetration, as well as extending the device’s life cycle. Software and application developers should consider this insight in making their compatibility phase in and phase out decisions.
Although unlimited data packages are gaining popularity, the 500MB–5GB range seems to be the sweet spot between accessibility and affordability. The effective data rates have been declining, yet consumers still feel that service providers should do more. The use of e-commerce-related services increases with age, and gender plays a role in influencing usage patterns.
Data privacy remains a concern, but most consumers believe that only their basic non-sensitive information is shared when they engage with companies online.
LOOKING AHEADLooking forward, the mobile consumer will continue to be at the centre of defining Africa’s future. Key to this future is an environment enabling the mobile industry to grow; inclusivity in access to broadband services; and responsible handling of consumer data. Transparency and education on data privacy and cyber security should be deliberate.
The release of new additional spectrum to the market is set to have a significant impact on the South African mobile telecommunications industry. This will trigger new investments and unlock additional capacity to improve access to broadband services.
The launch of a commercial 5G network providing Fixed Wireless Access (FWA) service in South Africa is also significant and sets the tone for the rest of Africa. With each new generation of technology, the expectation is that the digital divide will close, not widen. It is South Africa’s collective responsibility to bring as many of our people along with us as possible.
Grant ChivandireAfrica TMT Senior Manager, Deloitte Africa
FOREWORD
4
Global Mobile Consumer Survey 2019 | South Africa Cut
5
Global Mobile Consumer Survey 2019 | South Africa Cut
1
17%
15%
19%
15%
10%
23%
<R4,000 R4,000-R9,999 R10,000-R19,999 R20,000-R39,999 >R40,000 Prefer not to say/Idon't know
SAMPLE OVERVIEW
50%
41% 79%37% 22% 21%
50%
Sample size: 1 000
Gender split Monthly income
16-24 years 25-34 years 35-45 years
Age split Urban-Rural split
Urban Rural
<R4 000 >R40 000 Prefer not to say/ I don’t know
<R4 000-R9 999 <R10 000-R19 999 <R20 000-R39 999
8
Global Mobile Consumer Survey 2019 | South Africa Cut
Devices: Smartphones are the firm favourites, showing similar ownership rates to more developed markets in Europe. Laptops remain popular, but ownership is stagnant. Tablets are the only device category that showed declining ownership levels between 2018 and 2019.
Device ownership is mostly increasingSmartphones are the firm favourites of device users in South Africa, showing similar ownership rates to more developed markets in Europe. This shows that a smartphone, with the help of lower priced options, is fast becoming a basic requirement for consumers in the digital era.
Laptops remain popular, but ownership is stagnant and remains below the ownership rates in Europe, reflecting lower purchasing power compared to Europe and the potential leapfrogging and substitution of this technology by powerful smartphones.
Tablets, albeit still popular, are the only device category which showed declining ownership levels between 2018 and 2019. This may reflect the declining perceived advantage of these devices compared to smartphones, as the latter’s screen size and processing power has increased in recent years, making a secondary device such as tablets redundant.
Devices such as smart watches and fitness trackers are not yet very common in the South African market, but ownership of these devices increased noticeably between 2018 and 2019. Fitness bands have recorded the largest increase across all device categories.
Large differences between income groupsWhile smartphone ownership is widespread across all income groups, there are large differences between income groups for other devices. Device ownership, especially emerging technology, tends to increase with income levels.
While often seen as a low-cost alternative to smartphones, feature or basic phones serve as a secondary device for more affluent consumers, perhaps for their longer battery life.
DEVICE OWNERSHIP (2018 & 2019)
DEVICE OWNERSHIP BY INCOME GROUP
Q. Which of the following devices do you own or have ready access to (at work or home)?
Q. Which of the following devices do you own or have ready access to (at work or home)?
9%
10%
8%
12%
35%
45%
56%
94%
9%
12%
14%
16%
37%
41%
56%
97%
Virtual Reality (VR) Headset
Feature Or Basic Phone
Fitness Band
Smart Watch
Desktop Computer
Tablet
Laptop
Smartphone
20192018
Smartphone
Laptop
Tablet
Desktop computer
Smart watch
Fitness band
Feature or basic phone
Virtual reality (VR) headset
Smartphone Laptop Tablet Desktop computer
Smart watch Fitness band Feature or basic phone
Virtual reality (VR) headset
<R4 000 >R40 000<R4 000-R9 999 <R10 000-R19 999 <R20 000-R39 999
94%
32%
23%
16%
5% 4% 9% 6%
98%
49%
26% 31
%
8% 5%
14%
6%
99%
63%
44%
43%
17%
15%
13%
5%
97%
79%
59%
57%
24%
23%
15%
13%
97%
76%
60%
50%
31%
29%
17%
18%
Smartphone Laptop Tablet DesktopComputer
Smart Watch Fitness Band Feature OrBasic Phone
Virtual Reality(VR) Headset
DEVICE OWNERSHIP BY INCOME GROUP
<R4,000 R4,000-R9,999 R10,000-R19,999 R20,000-R39,000 >R40,000
9
Global Mobile Consumer Survey 2019 | South Africa Cut
Devices: Smartphones are popular across all age groups. Young consumers tend to be early adopters of emerging technologies.
Smartphones remain firm favourites across all age groupsSmartphone ownership is very high and relatively similar across all age groups.
Laptop and tablet ownership increases with age, with consumers within the age group 35–45 years most likely to own such a device. For most professionals, laptops remain an important productivity tool, often provided by employers.
Ownership of emerging technologies, such as smart watches, fitness trackers or virtual reality headsets, remains low across age groups, but is slightly more common among consumers within the age group 16–24 years. This may indicate an early-adopter status of this age group and, for owners of fitness bands, a greater awareness of a healthy lifestyle.
Device ownership is mostly increasing, but the degree of increase is age dependentThere have been noticeable changes in access to certain devices between the different age groups. While access to laptops and tablets declined noticeably among consumers aged 16–24 years between 2018 and 2019, access to these devices has increased among consumers within the age group 35–45 years.
DEVICE OWNERSHIP BY AGE (2018 & 2019)
Q. Which of the following devices do you own or have ready access to (at work or home)?
DEVICE OWNERSHIP BY AGE
96%
52%
40%
35%
17%
16%
12%
11%
96%
55%
39%
39%
15%
12%
13%
8%
98%
64%
47%
36%
16%
13%
10%
8%
Smartphone Laptop Tablet Desktopcomputer
Smart watch Fitness band Feature orbasic phone
Virtual reality(VR) headset
DEVICE OWNERSHIP BY AGE
16-24 25-34 35-45
Q. Which of the following devices do you own or have ready access to (at work or home)?
93%
95%
94%
58%
55%
53%
49%
39% 45
%
35%
35%
34%
14%
11%
11%
9% 6%
10%
11%
11%
6%
11%
8% 7%
96%
96%
98%
52% 55
% 64%
40%
39% 47
%
35% 39
%
36%
17%
15%
16%
16%
12%
13%
12%
13%
10%
11%
8% 8%
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
16-24
25-34
35-45
Smartphone Laptop Tablet Desktopcomputer
Smart watch Fitness band Feature or basicphone
Virtual reality (VR)headset
2018 2019
10
Global Mobile Consumer Survey 2019 | South Africa Cut
Devices: The top three device brands consolidated their combined market share from 83% in 2018 to 87% in 2019. Compared to 2018, the market leader lost market share in 2019 to its two strongest competitors.
Top brands cement their market leadership positionThe top three device brands consolidated their combined market share from 83% in 2018 to 87% in 2019, reflecting their brand appeal among consumers, as well as the strong linkage these brands have with the respective mobile operators.
Interestingly, compared to 2018, the market leader lost market share to its two strongest competitors in 2019.
iOS-powered devices are gaining in popularityWhile Android-powered phones are firm favourites among South Africans, the iOS operating system increased in popularity in 2019.
iOS is most popular among consumers aged 16–24 years, compared to other age groups. However, between 2018 and 2019, iOS’s popularity recorded the largest jump in the age group 35–45 years, increasing from 13% to 22%.
OPERATING SYSTEM BY AGE GROUP (2018 & 2019)
82%
77% 85
%
87%
18%
23%
15%
13%
78%
77%
79%
79%
22%
23%
21%
21%
Total 16-24 25-34 35-45 Total 16-24 25-34 35-45
Android iOS
OPERATING SYSTEM BY AGE GROUP (2018 & 2019)
2018 2019
Q. Which of the following devices do you own or have ready access to (at work or home)?
2018
2019
Q8. Which of the following devices do you own or have ready access to (at work or home)?
MARKET SHARE OF TOP 3 BRANDS (2018 & 2019)
38%
42%
27%
23%
22%
18%
13%
17%
#1 Brand #2 Brand #3 Brand Other
11
Global Mobile Consumer Survey 2019 | South Africa Cut
Devices: South Africans replace their phones quite frequently. Most consumers have relatively new phonesAbout two-thirds of consumers, irrespective of gender, own mobile phones that are less than two years old. This is in line with the standard upgrade intervals of mobile contracts in the South African market, a culture that seems to be followed by pre-paid subscribers as well.
Android users tend to have newer mobile phonesCompared to iOS users, Android users tend to have newer mobile phones. More than two-thirds of all Android users have access to a phone less than two years old, compared to less than 60% of iOS users.
This suggests lower price points and higher affordability of Android-powered devices, as well as the larger variety of devices with this operating system.
Second-hand phones are most common among young consumersOne-fifth of consumers used second-hand phones in 2019, a marginal increase across all age groups compared to the previous year. The use of second-hand phones declines with age, which also largely corresponds with an increase in income. The higher share of second-hand phones also indicates a common trend of handing down phones to younger family members after the purchase of or upgrade to a new device.
Q. When did you buy or receive your current mobile phone?
Q. When you got your current phone, was it new or used?
Q. When did you buy or receive your current mobile phone?
AGE OF MOBILE PHONE BY GENDER
AGE OF MOBILE PHONE BY OPERATING SYSTEM
NEW VS USED PHONE PURCHASES BY AGE
4% 3% 7%
16% 32
%
33%
4% 4%
8%
14% 31
%
33%
3% 3% 5%
19% 34
%
32%
>5 years 4-5 years 3-4 years 2-3 years 1-2 years <1 year
Total Male Female
3% 3% 7%15%
33% 34%
4% 4% 5%
22%30% 27%
>5 years 4-5 years 3-4 years 2-3 years 1-2 years <1 year
Android IOS
20192018201920182019201820192018
Tota
l 1
6-24
25-
34 3
5-45
New Used/Refurbished
80% 20%
80% 20%
84% 16%
85% 15%
87% 13%
78% 22%
78% 22%
82% 18%
12
Global Mobile Consumer Survey 2019 | South Africa Cut
Devices: South Africa has a culture of handing down used devices. Stores remain the most important sales channels for mobile phonesMore than half of all mobile phones were purchased in stores. Consumers seem to appreciate the in-store person-to-person interaction, as well as the ability to touch and feel the product before making a purchase. However, the dominance of stores marginally declined between 2018 and 2019, with online and telephonic purchases increasing slightly during the period.
Relatively small market for second-hand mobile phonesMost second-hand phone users received their phones from family members or friends, indicating a culture of handing down a device once a new device is purchased.
MOBILE PHONE PURCHASE BY SALES CHANNEL (2018 & 2019)
MOBILE PHONE PURCHASE BY SALES CHANNEL AND AGE
SALES CHANNEL FOR NEW AND SECOND-HAND PHONES
5%
1%
4%
3%
9%
19%
59%
5%
3%
3%
5%
11%
18%
55%
Other
I lease it
It was provided by my employer
I purchased it via a sales representative over the…
I purchased it online
I received it from a family member or friend
I purchased it in store
2019 2018
Q. Which, if any, of the following apply to how you got your current phone?
Q. Which, if any, of the following apply to how you got your current phone?
Q. When you got your current phone, was it new or used?
5%
2%
6%
5%
9%
18%
56%
4%
1%
5%
2%
10%
18%
60%
6%
0%
1%
4%
9%
21%
59%
Other
I lease it
It was provided by my employer
I purchased it via a sales representative over the phone
I purchased it online
I received it from a family member or friend
I purchased it in store
16-24 25-34 35-45
5%
3%
5%
6%
8%
58%
14%
3%
2%
2%
4%
12%
9%
67%
Other
I lease it
It was provided by my employer
I purchased it via a sales representative over the phone
I purchased it online
I received it from a family member or friend
I purchased it in store
New Second HandNew Second-Hand
16-24 25-34 25-34
I purchased in store
I received it from a family member or friend
I purchased it online
I purchased via a sales representative over the phone
It was provided by my employer
I lease it
Other
I purchased in store
I received it from a family member or friend
I purchased it online
I purchased via a sales representative over the phone
It was provided by my employer
I lease it
Other
I purchased in store
I received it from a family member or friend
I purchased it online
I purchased via a sales representative over the phone
It was provided by my employer
I lease it
Other
13
Global Mobile Consumer Survey 2019 | South Africa Cut
Accessories/services: “Wireless” is a big growth area. Protective accessories most common accessoriesMany mobile device users have purchased accessories or related services such as insurance for their devices. Protective accessories, such as a phone cases and screen protectors, are most popular.
Purchases of wireless accessories remain low, but present an interesting growth opportunity, especially with the number of devices launched without a standard 3.5mm headphone jack increasing.
50%49%
18%
13%
38%
29%27%
23%
16%
54%
50%
18%
12%
49%
21%
Power ban
k
Cable ch
arger
Wireless
charge
r
Phone ch
arging c
ase
Portable sp
eaker
Wired earp
hones
Wireless
headphones
Wired head
phones
Wireless
earpho
nes
Phone ca
se
Scre
en pro
tecto
r
Phone in
suran
ce
Phone st
and
Memory ca
rds
Camer
a acce
ssorie
s
OWNERSHIP OF ACCESSORIES/SERVICES
Q. Which of these accessories/services do you own that were purchased separately from the phone and/or received as a gift?
Base: All who own or have access to a smartphone or a feature/basic phone
Power Audio OtherProtection
14
Global Mobile Consumer Survey 2019 | South Africa Cut
Accessories/services: Most accessory purchases are a matter of income.
Large differences between income groupsWhile ownership of most accessories increases with income, there are only small differences in ownership across income groups for memory cards and cable chargers, suggesting that these accessories are regarded as more necessary than other accessories.
ACCESSORY/SERVICES OWNERSHIP BY INCOME GROUP
Q. Which of these accessories/services do you own that were purchased separately from the phone and/or received as a gift?
Base: All who own or have access to a smartphone or a feature/basic phone
29%
28% 30
%
49%
49%
17%
23%
12%
18%
13%
4%
7% 7% 8% 7%
48%
43%
48% 51
%
50%
31%
23%
22%
12% 16
%
10% 14
%
10% 13
%
12%
63%
57%
55%
49% 51
%
41%
32%
29%
24%
21%
20% 21
%
19%
15%
9%
68%
65%
63%
57%
53% 56
%
33%
40%
30%
29%
24%
31%
21%
21%
17%
74%
68%
67%
53% 54%
55%
41%
42%
36%
36%
33%
27% 30
%
18%
19%
Phone case Screenprotector
Power bank Memorycards
Cablecharger
Portablespeaker
Wiredearphones
Wirelessheadphones
Wiredheadphones
Cameraaccessories
Phoneinsurance
Wirelesscharger
Wirelessearphones
Phonecharging
case
Phone stand
<R4,000 R4,000-R9,999 R10,000-R19,999 R20,000-R39,999 >R40,000
Phone case Screen protector
Power bank
Memory card
Cable charger
Portable speaker
Phone stand
Wired earphones
Wireless headphones
Wired earphones
Camera accessories
Phone insurance
Wireless charger
Wireless earphones
Phone charging
case
<R4 000 >R40 000<R4 000-R9 999 <R10 000-R19 999 <R20 000-R39 999
15
Global Mobile Consumer Survey 2019 | South Africa Cut
Accessories/services: iOS users are more likely to buy accessories. Noticeable differences between operating systemsThere are noticeable differences between users of the two dominant operating systems and their demand for various accessories. iOS users seem to be more likely to buy accessories or insurance compared to Android users.
This may suggest that Android-powered phones are often bundled with accessories such as phone cases and screen protectors.
Given that iOS-powered devices tend fall into the high-price/premium segment, it is not surprising that more iOS users purchase insurance services for their devices.
ACCESSORY OWNERSHIP BY OPERATING SYSTEM
Q. Which of these accessories/services do you own that were purchased separately from the phone and/or received as a gift?
Base: All who own or have access to a smartphone or a feature/basic phone
11%
13%
15%
17%
15%
20%
22%
26%
29%
36%
50%
54%
49%
48%
50%
18%
13%
22%
20%
27%
27%
25%
30%
31%
47%
43%
30%
55%
60%
70%
Phone stand
Phone charging case
Wireless earphones
Wireless charger
Phone insurance
Camera accessories
Wired headphones
Wireless headphones
Wired earphones
Portable speaker
Cable charger
Memory cards
Power bank
Screen protector
Phone case
ACCESSORY OWNERSHIP BY OPERATING SYSTEM
iOS
Android
Phone case
Screen protector
Power bank
Memory card
Cable charger
Portable speaker
Wired earphones
Wireless headphones
Wired headphones
Camera accessories
Phone insurance
Wireless charger
Wireless earphones
Phone charging case
Phone stand
18
Global Mobile Consumer Survey 2019 | South Africa Cut
MONTHLY DATA ALLOWANCE BY AGE
UNLIMITED MONTHLY DATA ALLOWANCE BY AGE (2018 & 2019)
UNLIMITED MONTHLY DATA ALLOWANCE BY INCOME GROUP (2018 & 2019)
Access to mobile internet: Capped data packages remain the norm, but unlimited packages are gaining in popularity.
Capped data packages remain the normMonthly data packages below 5GB are the most common package sizes, accounting for about 50% of all data packages. They represent a balance between accessibility and affordability. Close to one-third of consumers within the age group 25–34 years subscribe to capped packages of more than 5GB per month, making them the largest group of “heavy, but capped” users. In contrast, less than 20% of consumers aged 16–24 years fall into this category.
Unlimited data packages are gaining popularityWhile capped data packages remain the norm in South Africa, unlimited packages are gaining in popularity. In particular consumers within the age group 16-24 years subscribe to unlimited packages. However, the popularity of unlimited packages among this age group dropped slightly between 2018 and 2019. The age group 25–34 years recorded the largest increase in unlimited packages.
Unsurprisingly, unlimited data packages, which tend to be among the most expensive subscriptions in South Africa, are most popular among consumers with a monthly income of more than R40 000 and least popular among the income group earning less than R4 000 a month.
Interestingly, the increase in subscribers to unlimited packages increased noticeably at the lower end of the income spectrum, indicating the changing value proposition of these uncapped packages.
16%
34%
11%
7% 7%
14%
6% 5%
19%
32%
8% 6% 5%
16%
6% 8%
11%
34%
14%
8% 8%
13%
7%
4%
19%
35%
12%
7% 8%
11%
5%
2%
Less than 500MB
Between 500MB but lessthan 5 GB
Between 5 GBbut less than
10 GB
Between 10 GBbut less than
20 GB
More than 20GB
It is unlimited I pay per use Don’t know
Total 16-24 25-34 35-45
11%
16%
8%7%
14%
16%
13%11%
Total 16-24 25-34 35-45
2018 2019
7%5%
7%
10%
20%
10%
15%
12%13%
22%
<R4,000 R4,000-R9,999 R10,000-R19,999 R20,000-R39,000 >R40,000
2018 2019
Q. What is your monthly data allowance on your phone?
Q. What is your monthly data allowance on your phone?
Less than 500MB
Between 500MB but less than
5GB
Between 5GB but less than
10GB
Between 10GB but less
than 20GB
More than 20GB
It is unlimited I pay per use Don’t know
Total 16-24 25-34 35-45
<R4 000 >R40 000<R4 000-R9 999 <R10 000-R19 999
2018 2019
<R20 000-R39 999
19
Global Mobile Consumer Survey 2019 | South Africa Cut
Access to mobile internet: Satisfaction with internet subscription is increasing. Half of consumers are satisfied with their internet subscriptionsAbout 50% of South African consumers are satisfied with their internet subscriptions. Satisfaction with internet subscriptions has increased in 2019, compared to 2018.However, still more than a quarter would use the internet more if data was more affordable – a slight decline compared to the previous year. Cost remains the most important factor inhibiting consumers from using the internet more.
Large differences between age groupsIn terms of internet subscription, consumers aged 16–24 years remain the most satisfied age group. Satisfaction with internet subscriptions increased the most within the age group 35–45 years. Cost as an inhibitor to using the internet more is least pronounced among consumers within the age group 16–24 years who are likely to pass the responsibility to parents/guardians.
Satisfaction increases with package sizesConsumers that subscribe to large data packages or to uncapped packages tend to be more satisfied with the size of their packages compared to subscribers to smaller packages. Users with uncapped packages are the most satisfied consumers, but – interestingly – not all these users are satisfied, which might be an indication of dissatisfaction with the pricing of these uncapped packages.
SENTIMENT TOWARDS CURRENT INTERNET SUBSCRIPTION/TARIFF (2018 & 2019)
SENTIMENT TOWARDS CURRENT INTERNET SUBSCRIPTION/TARIFF BY AGE (2018 & 2019)
COMPLETE SATISFACTION WITH SIZE OF INTERNET PACKAGE BY DATA ALLOWANCE
41%
29%
11%6%
13%
49%
26%
9% 5%12%
My mobile internet packageallows me to access the
internet as much as I like
I would access the internetmore frequently if it was
cheaper
I would access the internetmore frequently if I couldbetter understand how
much data each app uses
I don't access the internet asmuch as I like as I am
worried about going overmy allowance
I don't know/Other
2018 2019
45%
41%
35%
20% 34
% 40%
10%
11%
12%
6% 6% 5%
18%
9% 10%
52%
46%
48%
19% 31
%
29%
9% 9% 9% 6% 5% 5%
14%
10%
8%
16-24 25-34 35-45 16-24 25-34 35-45 16-24 25-34 35-45 16-24 25-34 35-45 16-24 25-34 35-45
My mobile internet packageallows me to access the
internet as much as I like
I would access the internetmore frequently if it was
cheaper
I would access the internetmore frequently if I couldbetter understand how
much data each app uses
I don't access the internet asmuch as I like as I am
worried about going overmy allowance
I don't know/other
2018 2019
31% 41%54%
67% 59%83%
31% 31%
Less than 500 MB Between 500 MBbut less than 5
GB
Between 5 GBbut less than 10
GB
Between 10 GBbut less than 20
GB
More than 20 GB It is unlimited Don’t know I pay per use
Q. How do you feel about your current internet subscription/tariff on your mobile phone?
Q. How do you feel about your current internet subscription/tariff on your mobile phone?
Q. How do you feel about your current internet subscription/tariff on your mobile phone?
Less than 500MB
My mobile internet package allows me to access the internet as
much as I like
My mobile internet package allows me to access the internet as
much as I like
I would access the internet more frequently if it was
cheaper
I would access the internet more frequently if it was
cheaper
I don’t access the internet as much as l like as I am worried about going over my
allowance
I don’t access the internet as much as l like as I am worried about going over my
allowance
I don’t know/Other
I don’t know/Other
I would access the internet more frequently
if l could better understand how much
data each app uses
I would access the internet more frequently
if l could better understand how much
data each app uses
Between 500MB but
less than 5GB
Between 5GB but less than
10GB
Between 10GB but less
than 20GB
More than 20GB
It is unlimited Don’t know I pay per use
2018 2019
2018 2019
20
Global Mobile Consumer Survey 2019 | South Africa Cut
Internet speed: Two-thirds of consumers are satisfied with internet speeds.
Satisfaction with internet speed improvesConsumer satisfaction with internet speed improved slightly between 2018 and 2019. More than two-thirds of consumers are satisfied with the internet speed they receive. The relatively high levels of satisfaction with mobile internet speed reflects the increased availability of LTE (Long-Term Evolution) coverage in South Africa. According to the Independent Communications Authority of South Africa (ICASA), LTE coverage increased from 76.7% in 2017 to 85.7% in 2018.
The willingness of dissatisfied consumers to pay more for faster internet speed increased marginally. As such, there is a slim opportunity to differentiate through speed-based packages.
Satisfaction with internet speed a matter of smartphone ageThe satisfaction with internet speed declines with the age of the phone. While more than 70% of consumers who bought their phones during 2019 are satisfied with the speed of their internet connection, only just over half of consumers who bought their phones five or more years ago are satisfied.
While older devices may negatively impact the overall user experience, newer devices tend to have faster processors and support new capabilities, for example, LTE advanced features like Carrier Aggregation and more advanced modulation schemes such as 256QAM and 4x4MIMO.
SATISFACTION WITH INTERNET SPEED BY YEAR OF SMARTPHONE PURCHASE
SATISFACTION WITH INTERNET SPEED (2018 & 2019)
64%
13% 16%7%
67%
14% 13% 7%
I am satisfied with theinternet speed I currently get
I am not satisfied with theinternet speed I currently get,and I would pay more to get
greater speed
I am not satisfied with theinternet speed I currently get,but I would not pay more to
get greater speed
I don't know/other
2018 2019
54%61%61%
65%71%71%
Before 2014 In 2015 In 2016 In 2017 In 2018 In 2019
Q. How do you feel about the internet speed you currently get on your phone from your operator?
Q. How do you feel about the internet speed you currently get on your phone from your operator?
21
Global Mobile Consumer Survey 2019 | South Africa Cut
5G: There are strong shifts in attitude towards 5G. Strong shifts in attitude towards 5G across age groupsWhile consumers aged between 35–45 years were the least enthusiastic age group in 2018, they have become most enthusiastic in 2019. This indicates a potential rise in awareness of the benefits of this new technology.
The share of consumers in the 25–34 age group that would adopt 5G as soon as it is available dropped between 2018 and 2019. These shifts illustrate that the different age groups tend to be at different stages on the “Gartner’s Hype Cycle” of new technologies. Men remain more enthusiastic about 5GWhile men remain more enthusiastic about 5G adoption, their enthusiasm cooled between 2018 and 2019. In contrast, enthusiasm among women, who tend to be less enthusiastic about 5G than men are, has increased markedly during the same period.
Women seem to follow a wait-and-see approach towards 5G, with about a quarter of them willing to adopt this new technology once they hear positive reports.
WILLINGNESS TO ADOPT 5G BY GENDER (2018 & 2019)
WILLINGNESS TO ADOPT 5G BY AGE GROUPS (2018 & 2019)
47% 56
%
38%
23%
17%
28%
13%
13%
13%
3% 2% 3%
48% 53
%
43%
21%
16% 25
%
15%
16%
14%
6% 5% 6%
Total Male Female Total Male Female Total Male Female Total Male Female
As soon as it is available If I start hearing good thingsabout it
Eventually If it was a standard offering andthere was no alternative
2018 2019
Q. When would you switch to a 5G network?
Q. When would you switch to a 5G network?
47%
45% 53
%
41%
23%
24%
23%
21%
13%
13%
11% 18
%
3% 3% 2% 3%
14%
15%
11% 16
%
48%
44% 48
% 55%
21% 24
%
21%
15%
15%
13% 16
%
15%
6% 6% 6% 5%
11% 13
%
8% 10%
Total 16-24 25-34 35-45 Total 16-24 25-34 35-45 Total 16-24 25-34 35-45 Total 16-24 25-34 35-45 Total 16-24 25-34 35-45
As soon as it is available If I start hearing goodthings about it
Eventually If it was a standardoffering and there was
no alternative
Don't know
2018 2019
24
Global Mobile Consumer Survey 2019 | South Africa Cut
Apps/services: Women and older consumers tend to use their phones for a wide range of services/apps.
Women tend to use their phones for a wide range of services/appsWomen tend to use a wider range of services and apps and seem to be more active on social media platforms than men are. Compared to men, a larger proportion of women use their phones to take photos and share these online.
Older consumers tend to use their phones for a wide range of services/appsThe range of services and apps used by consumers increases with age. Consumers aged 35–45 years tend to be more active on social media platforms compared to other age groups.
PURPOSES PHONE USED FOR BY GENDER PURPOSES PHONE USED FOR BY AGE
61%
56%
56%
55%
52%
50%
44%
40%
37%
37%
33%
23%
6%
51%
53%
47%
46%
44%
40%
36%
32%
30%
30%
28%
21%
9%
71%
60%
64%
64%
60%
60%
51%
48%
45%
43%
38%
26%
4%
Take photos
Play games
Check my social networks
Share photos on instant messaging apps
Share videos on instant messaging apps
Post photos on social networks
Use photo/camera filters
Record videos
Edit photographs/videos
Post videos on social networks
Upload photographs/videos to a file storage site
Go 'live' on social networks
None of these
Total Male Female
52%
52%
51%
49%
46%
44%
43%
35%
38%
35%
29%
20%
7%
64%
56%
55%
60%
54%
54%
43%
40%
37%
36%
32%
22%
7%
73%
65%
65%
57%
57%
54%
45%
49%
35%
42%
41%
29%
4%
Take photos
Play games
Check my social networks
Share photos on instant messaging apps
Share videos on instant messaging apps
Post photos on social networks
Use photo/camera filters
Record videos
Edit photographs/videos
Post videos on social networks
Upload photographs/videos to a filestorage site
Go 'live' on social networks
None of these
16-24 25-34 35-45
Q. Which of the following, if any, do you regularly use your phone to do? Q. Which of the following, if any, do you regularly use your phone to do?
25
Global Mobile Consumer Survey 2019 | South Africa Cut
Voice assistants: Smart speakers are still very niche in the South African market.
Apps/services: Women and older consumers tend to use their phones for a wide range of services/apps.
TOP 5 REASONS FOR USING VOICE ASSISTANT ON SMARTPHONE
TOP 5 REASONS FOR USING VOICE ASSISTANT ON SMART SPEAKERS
Play musicDial a person in contact listSearch for general informationSet up alarms or timersFor amusement
44%
26%
26%
26%
24%
Play musicDial a person in contact listSearch for general informationFor amusementText a person in contact list
Less than 10% market penetration of smart speakersIn the absence of complementary services, smart speakers remain a very niche product. These devices are also used for applications, for which other user interfaces may be more productive or suitable. Hence, at this stage, smart speakers are rather gadgets rather than efficiency enhancers.
Use of voice assistant on smartphones is quite commonWhile more than two-thirds of South African smartphone owners use voice assistants, this functionality is often used for applications such as playing music, dialling a phone number or even amusement. This indicates the missed potential of voice assistants to drive productivity.
Q. For which, if any, of the following reasons do you use the voice assistant on your voice assisted speaker
Base: All who have a voice-assisted speaker
Q. For which, if any, of the following reasons do you use the voice assistant provided on your mobile phone?
Base: All who own or have access to a smartphone
24%
19%
18%
17%
15%
TOP 5 REASONS FOR USING VOICE ASSISTANT ON SMARTPHONE
28
Global Mobile Consumer Survey 2019 | South Africa Cut
Mobile games: Women are interested in puzzles, simulations and card games, while men enjoy racing, action and sport games.
MOST POPULAR GAMES BY GENDER, AGE AND INCOME
Rank OverallGender Age group Income group (monthly income)
Female Male 16-24 years 25-34 years 35-45 years <R4 000 R4 000-R9 999 R10 000-R19 999 R20 000-R39 999 >R40 000
1 Casual/Puzzle Casual/Puzzle Racing games Simulation Casual/Puzzle Casual/Puzzle Casual/Puzzle Casual/Puzzle Casual/Puzzle Casual/Puzzle Casual/Puzzle
2 Simulation Simulation Action/Adventure Casual/Puzzle Racing games Card games Racing games Racing games Card games Racing games Strategy
3 Card games Card games Sports Role playing Action/Adventure Board/Word Card games Card games Simulation Action/Adventure Simulation
4 Action/Adventure Role playing Strategy Action/Adventure Strategy Casino/Betting Action/Adventure Board/Word Board/Word Card games Role playing
5 Racing games Board/Word Casual/Puzzle Racing games Board/Word Strategy Sports Strategy Action/Adventure Role playing Action/Adventure
6 Board/Word Family/Trivia Simulation Strategy Card games Arcade/Retro Simulation Simulation Strategy Simulation Board/Word
7 Strategy Music/Rhythm Arcade/Retro Board/Word Simulation Racing games Board/Word Action/Adventure Arcade/Retro Strategy Card games
8 Role playing Strategy Card games Music/Rhythm Role playing Family/Trivia Role playing Casino/Betting Racing games Sports Arcade/Retro
9 Arcade/Retro Action/Adventure Board/Word Card games Family/Trivia Simulation Music/Rhythm Family/Trivia Role playing Board/Word Music/Rhythm
10 Music/Rhythm Casino/Betting Casino/Betting Sports Arcade/Retro Action/Adventure Strategy Sports Casino/Betting Arcade/Retro Family/Trivia
11 Sports Arcade/Retro Music/Rhythm Arcade/Retro Casino/Betting Sports Family/Trivia Role playing Family/Trivia Casino/Betting Racing games
12 Family/Trivia Racing games Role playing Family/Trivia Sports Music/Rhythm Casino/Betting Arcade/Retro Music/Rhythm Music/Rhythm AR games
13 Casino/Betting AR games Family/Trivia Casino/Betting Music/Rhythm Role playing Arcade/Retro Music/Rhythm Sports Family/Trivia Sports
14Augmented Reality
(AR) gamesI don’t play games on
a mobile phoneAR games AR games AR games
I don’t play games on a mobile phone
I don’t play games on a mobile phone
I don’t play games on a mobile phone
I don’t play games on a mobile phone
AR gamesI don’t play games on
a mobile phone
15I don’t play games on
a mobile phoneSports
I don’t play games on a mobile phone
I don’t play games on a mobile phone
I don’t play games on a mobile phone
AR games AR games AR games AR gamesI don’t play games on
a mobile phoneCasino/Betting
Big difference between men and womenWhile racing, action/adventure and sports games are key favourites among men, these types of games do not attract much attention from women. Women are more interested in casual/puzzle, simulation and card games.
Big difference between age groupsWhile the popularity of simulation games declines with age, the popularity of card games increases with age.
Mixed bag among income groupsWhile casual/puzzle games are the most popular games across all income groups, there is no clear pattern of popularity.High income earners are least likely to play casino/betting games.
Q. Which, if any, of the following types of games do you play on a smartphone?
Base: All who own or have access to a smartphone
29
Global Mobile Consumer Survey 2019 | South Africa Cut
Mobile games: Purchases are small, young consumers seek exclusivity and the propensity to buy increases with age.
MOST POPULAR GAMES BY GENDER, AGE AND INCOME REASON FOR IN-APP GAME PURCHASES BY AGE
MONTHLY SPEND ON IN-APP GAME PURCHASE BY AGE
49% 51% 50% 43%
51% 49% 50% 57%
Total 16-24 25-34 35-45
IN-APP GAME PURCHASES BY AGE
In-app game purchases
No in-app game purchases
In-app purchases increase with ageAbout 50% of consumers made in-app game purchases in 2019, with consumers aged 35–45 years being slightly more likely to make in-app purchase than consumers from other age groups.
Most purchases are small amountsMost purchases cost between R1 and R10. The least likely age group to make in-app game purchases, consumers aged 16–24 years, are most likely to make purchases of higher value driven by the desire to access exclusive content.
Young consumers look for exclusivityThe most common reasons for consumers to make in-app purchases are to get in-app credit or to unlock the full game. However, consumers in the 16–24 age group are more likely than other age groups to make in-app purchases that give them access to exclusive content or customisation.
0%
10%
20%
30%
40%
50%
60%
70%
R0
R1-R10
R11-R20
R21-R30
R31-R40
R41-R50
R50-R99
R100+
Total 16-24 25-34 35-45
Q. Typically how much, if anything, do you spend on in-app purchases for mobile games each month? Please think about your total in-app purchases across all mobile games.
Base: All who own or have access to a smartphone and play games on their phone
Q. Which, if any, of the following have you purchased?
Base: All who own or have access to a smartphone and play games on their phone as well as make a in app purchase
43%
43%
32%
32%
30%
26%
15%
23%
17%
39%
32%
26%
24%
21%
26%
21%
18%
10%
42%
39%
29%
18%
16%
11%
18%
13%
18%
To get in-app credits or currency
To purchase /unlock the full game
To purchase in-game equipment/items
To purchase in-game skins/characters
To buy exclusive extra content
To gain access to a new level or area
To get speed ups
To skip ads in a free version
To remove time limitations to continue playing
16-24 25-34 35-45
In-app game purchases
No in-app game purchases
Total 16-24 25-34 35-35
16-24 25-34 35-35
32
Global Mobile Consumer Survey 2019 | South Africa Cut
Digital entertainment: The use of data-heavy streaming services tends to increase with age and income.
VIDEO AND FILM CONSUMPTION BY GENDER VIDEO AND FILM CONSUMPTION BY AGE
VIDEO AND FILM CONSUMPTION BY INCOME GROUP
Big difference between men and womenWomen are far more active video/film viewers than men are. More than two-thirds of women watch short videos, live posts or stories on their mobile devices compared to just over half of men.
Q. Do you use your phone for any of these products or services?
Q. Do you use your phone for any of these products or services?
Q. Do you use your phone for any of these products or services?
60%
42%
41%
34%
26%
17%
52%
39%
36%
28%
25%
17%
68%
44%
47%
40%
27%
17%
Watch short videos or live posts or stories
Stream/play music
Watch videos shared on instant messagingnetworks
Stream films and/or TV series
Watch video news stories on news apps
Watch l ive TV
Total Male Female
53%
34%
16%31%
40%
19%
63%
45%
17%
35%45%
28%
67%
48%
19%
37% 39% 35%
Watch shortvideos or live
posts or stories
Watch videosshared on instant
messagingnetworks
Watch live TV Stream filmsand/or TV series
Stream/playmusic
Watch videonews stories on
news apps
16-24 25-34 35-45
Big differences between age and income groups The frequency with which video content is consumed increases with age and income level. Affordability of data may have a strong influence on this observation.
49%
35%
13% 24% 30%
22%
54%
43%
14%
34%
32%
23%
67%
51%
17% 33% 43%
26%
74%
49%
26%
45% 57%
36%
76%
55%
21%
52%
57%
32%
Watch shortvideos or live
posts or stories
Watch videosshared on instant
messagingnetworks
Watch live TV Stream filmsand/or TV series
Stream/playmusic
Watch videonews stories on
news apps
<R4,000 R4,000-R9,999 R10,000-R19,999 R20,000-R39,999 >R40,000
16-24 25-34 35-35
<R4 000 >R40 000R4 000-R9 999 R10 000-R19 999 R20 000-R39 999
33
Global Mobile Consumer Survey 2019 | South Africa Cut
Digital entertainment: iOS users are more likely to stream films/TV series and music.
Big difference between operating systemsCompared to Android users, iOS users tend to be more likely subscribers to digital entertainment content. This is especially pronounced for streaming films, TV series and music. The higher likelihood of having a subscription for entertainment, which also acts to drive higher consumption rates, may be a result of slightly higher income levels of iOS users.
MEDIA CONSUMPTION BY OPERATING SYSTEM
Q. Which of the following, if any, do you regularly use your phone to do?
59%
41%
17%
32%38%
62%
44%
16%
40%
54%
Watch short videos orlive posts or stories
Watch videos sharedon instant messaging
networks
Watch l ive TV Stream films and/or TVseries
Stream/play music
Android IOS
36
Global Mobile Consumer Survey 2019 | South Africa Cut
Mobile payments/e-commerce: The use of mobile payments and e-commerce-related services increases with age, but is often limited to basic functions.
Large differences between age groupsThe use of mobile payments and e-commerce-related services increases with age. Compared to other age groups, consumers within the age group 35–45 years tend to be the most active users of mobile payment and e-commerce services, reflecting the different financial services needs across age groups.
On average, this age group uses close to five different services, whereas consumers aged 16–24 use fewer than three services.
The most prominent mobile payment-related activities are basic, such as checking of bank balances or browsing shopping websites.
The popularity and convenience of e-hailing services, like Uber, is especially pronounced among the 25–34 age group.
MOBILE PAYMENTS AND E-COMMERCE RELATED ACTIVITIES BY AGE GROUP
Q. Do you use your phone for any of these products or services?
16-24Total 25-34 35-35
47%
41%
35%
35%
33%
30%
29%
24%
21%
19%
18%
15%
14%
13%
8%
4%
14%
34%
31%
22%
24%
22%
22%
19%
22%
16%
13%
13%
10%
10%
9%
8%
5%
20%
54%
45%
43%
41%
41%
34%
35%
29%
24%
19%
21%
17%
18%
12%
8%
4%
10%
58%
54%
47%
45%
40%
39%
41%
19%
28%
27%
21%
20%
16%
21%
6%
3%
10%
Check bank balances
Browse shopping websites/apps
Make other online banking transactions
Research a product/service
Transfer money to another individual in the same country
Make an online purchase of a product
Read reviews about a product/service
Pay for a taxi (incl. e-hailing services)
Make reservations/bookings
Interact with businesses via messenger apps
Make an online purchase of a service
Pay for a product/service in-store
Transfer money to another individual located in a different country
Reserve or purchase online for store pick-up a product for pick-up
Pay for public transport
Pay for car parking
None of these
Check bank balances
Browse shopping websites/apps
Make other online banking transactions
Research a product/service
Transfer money to another individual in the same country
Make an online purchase of a product
Read reviews about a product/service
Pay for a taxi (incl. e-hailing services)
Make reservation/bookings
Interact with businesses via messenger apps
Make an online purchase of a service
Pay for a product/service in-store
Transfer money to another individual located in a different country
Reserve or purchase a product online for store pick-up
Pay for public transport
Pay for car parking
None of these
37
Global Mobile Consumer Survey 2019 | South Africa Cut
Mobile payments: Still niche services, but are gaining momentum.
Mobile payment services remain niche services Mobile payment services are a fairly new service in South Africa, with some internationally leading services not yet launched in South Africa.
Hence, it is not surprising that only 15% of consumers use mobile payments. The relatively low uptake in mobile payment services, however, reflects the potential for growth.
Popularity of mobile payments is increasing Among consumers that use mobile payments, services such as PayPal, Google Pay and contactless payments apps offered by banks are the most popular. Some of these mobile payment services have recorded strong growth since their launches in recent years, indicating a healthy appetite for mobile payments among South African consumers.
Interestingly, Google Pay and Apple Pay are yet to be launched in South Africa, but some consumers already claim to use them.
USE OF MOBILE PAYMENT SERVICES BY AGE USE OF MOBILE PAYMENT SERVICES (2018 & 2019)
Q. Which of the following in-store mobile payment solutions have you used?
Base: All who uses their phone to pay for a product/service in-store
Q. Which of the following in-store mobile payment solutions have you used?
Base: Consumers that use mobile payment service
43%
38%
37%
25%
24%
23%
20%
18%
15%
10%
8%
4%
0%
0%
32%
0%
15%
0%
17%
0%
10%
14%
29%
7%
PayPal app (Scan and pay)
Android Pay/Google Pay
Contactless payments app offered byyour bank
Local mobile money services
Scan and pay app offered by a retailer
Samsung Pay
Masterpass
Apple Pay
Pay by SMS
Contactless payments app offered by amobile operator
None of these
Don't know 2019
2018
85% 90%83% 80%
15% 10%17% 20%
Total 16-24 25-34 35-45
Using mobile payment service
Not using mobile payment services
40
Global Mobile Consumer Survey 2019 | South Africa Cut
Privacy: Most consumers think only their basic online data is used or shared.
Majority of consumers believe their data is used and/or shared onlineAbout two-thirds of consumers believe that their data is used by companies they engage with online. This has been relatively constant compared to 2018. More than half of consumers believe that their data is also shared with third parties. This is a slight increase from the previous year.
Basic information is believed to be sharedAmong the information most frequently believed to be shared with third parties is basic information such as email addresses, names and phone numbers. While this can already be regarded as sensitive information, only a small group of consumers believes that more sensitive information, such as health metrics, are passed on to third parties. As such, privacy concerns are low, and most people seem to accept that they will have to share some of their personal information in order to access these platforms.
DATA USED BY ONLINE COMPANY (2018 & 2019) TYPE OF INFORMATION SHARED WITH ONLINE COMPANIES (2018 & 2019)
DATA SHARED WITH 3RD PARTIES (2018 & 2019)
Q. Do you believe that the companies you interact with online use your personal data?
Q. Do you believe that the companies you interact with online use your personal data?
Q. Do you believe that the companies you interact with online share your personal data with third parties (e.g. social networks sharing data with retailers)?
64%
11%
26%
64%
13%23%
Yes No I don't know
2018 2019
55%
17%
29%
56%
18%26%
Yes No I don't know
2018 2019
9%
7%
11%
17%
17%
19%
23%
34%
37%
44%
46%
8%
11%
12%
13%
21%
22%
24%
35%
40%
42%
50%
51%
I never share any of these forms ofpersonal information
My health metrics
My purchase history
I don't know
My browsing activity
My address
My friends/contacts list
Location*
My photos
My phone number
My name
My email address
2019
2018
*not measured in 2018
2018 2019
2018 2019
41
Global Mobile Consumer Survey 2019 | South Africa Cut
CONTACTS
Mark JosephAfrica TMT LeaderDeloitte [email protected]
Garikai MatamboAfrica TMT Industry StrategistDeloitte [email protected]
Andronicah JiyaneAfrica TMT Marketing LeadDeloitte [email protected]
AuthorSimon SchaeferManager: Africa InsightsDeloitte [email protected]
Co-AuthorGrant ChivandireAfrica TMT Senior ManagerDeloitte [email protected]
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