DISCLAIMER: I’m going to have a full on rant in this piece, so please bear with me!
It’s time we have a serious conversation about the price of flagship smartphones in South Africa, because frankly it’s just getting ridiculous. I mean, this is not a new development – we’ve been watching the price of smartphones rise for ages now. Sure this is partly driven by the rands weakness against major currencies and the Ad Valorum tax (luxury tax) which can add up to 25% to the sticker price. But that’s not the entire story. There are numerous factors that influence the price and when you include retail and distributor margins, with some of them practically having a monopoly, (especially with iPhones) this pushes prices further into stupid territory.
Let’s unpack the costs
For reference, the iPhone 16 Pro Max starts at just over R31,000. Thirty-one thousand Rand! The Samsung Galaxy S25 Ultra? A cool R29,000 -Granted that price is slightly lower than last year’s S4 Ultra, which is a welcome development. However when you factor in the average monthly income in South Africa, is R28,288 (according to Businesstech), dropping 30 grand on the latest iPhone or Galaxy device is simply out of reach for most people. Even brands like Vivo are starting to take the Mickey – their recently launched X200 Pro commanding an eye-watering R40,000 here. This is a phone that can be had for $843 (R15,89.37) in China. Let that sink in for a second.
You’re telling me most people are supposed to shell out their entire monthly salary (and then some) for a phone? It’s just ludicrous.
Yes we need action to remove or at least reduce those pesky ad valorem taxes. In fact Communications Minister Solly Malatsi said as much, in an interview with Geekhub late last year. But we seriously need to find alternatives, not just for entry level smartphones, but at the top end too. A smartphone is no longer a luxury, it’s a necessity. And the difference between a basic phone and a flagship can be the difference between just getting by and actually thriving in the digital world.
48 month Contracts: A real bad deal
The networks, in their “generous” efforts to make these devices more affordable, have come up with a solution: 48-month contracts. Mybroadband first reported on Vodacom adding 48 month contracts to its catalogue in September 2024, in an attempt to bring down the monthly costs.
“Our 48-month contract strategy aims to make high-end devices more affordable to our customers. This approach helps customers stay connected even during challenging economic times,” said a Vodacom spokesperson.
Sure, your monthly payments are lower, but it’s a bad deal no matter which way you look at it. A generation-old iPhone 15 (128GB) on Vodacom’s Red Core 1.3 package will set you back R739 a month for four years. That’s R35,472. For a phone that retails for under R16,000! Sure, the contract includes airtime and data, but 1.3GB of data on an iPhone? Come on! It’s just as pointless as financing a BMW M3 with a 30% balloon payment and not being able to afford the fuel. These companies have evolved into finance houses, pushing stuff people actually can’t afford.
But there’s another way. Quite frankly, a smarter way.
The case for going the CPO route
Have you heard of certified pre-owned (CPO) smartphones? I recently snagged a pre-owned iPhone, and It got me thinking: why aren’t more people doing this?
Because there’s a negative connotation associated with going pre-owned. Most people hear pre-owned and think – someone else’s second-hand rubbish.
CPO doesn’t mean “used and abused. This is not the same as browsing Gumtree or Facebook Marketplace, for a second-hand smartphone, this is legit. Buying second-hand is massively risky: no warranty, no guarantee the device isn’t stolen, and no way to know if it’ll stop working a week after you buy it. Certified pre-owned (CPO) smartphones, on the other hand, are a completely different story. Each device undergoes a 40-point diagnostic check by the supplier to ensure it is fully functional and meets like-new standards. Every component is tested for performance, reliability, and overall quality—with all original parts intact.
In addition to functionality, these devices are graded based on aesthetics:
• Grade A – Looks like a brand-new device with no blemishes or scratches.
• Grade B – May have a slight blemish on the housing but none on the screen.
And they come with warranties! Often the equivalent of a brand new phone. Peace of mind. The same peace of mind you get from buying new, but without the crippling price tag. You’re Welcome!
Another myth we need to bust: The idea that we need a new phone every year. Clever marketing and the huge budgets that accompany it, would have us believe that we need to upgrade every year. But this cannot be further from the truth.
In fact modern smartphones are tough and built to last. A three- or four-year-old iPhone or Galaxy is still a great phone. They get regular software updates are powerful enough through multiple generations and are generally durable. Apart from maybe a battery change, you don’t need the latest model every year. I got my hands on a CPO iPhone 11 Pro which I’ve been using as a secondary device and it is absolutely fantastic. In fact, it’s so good I find myself gravitating to the iPhone 11 Pro over my primary 16 Pro Max for most of my daily tasks that don’t require a powerful camera or larger battery. We’re talking about a six year old phone here.
Ok, so the rant is over. If you’ve read this far, thank you. I know you will surely thank me later when you save a whole lot of cash.
Besides,It’s not just about saving money (though that’s a big plus). It’s about supporting local businesses, creating jobs. It’s about the environment. Making phones uses a ton of resources. Choosing CPO means you’re extending the life of a device and reducing e-waste. It’s a small thing, but it makes a difference.
So, where do you find legit CPO phones?
As with anything, not all CPO devices are equal. There’s a fair amount of due diligence required, especially when it comes to understanding the different grades of CPO devices and where they are sourced from. Big players like Makro Marketplace, iStore-preowned, Vodacom, and Takealot are some of the safest options. I have found Makro marketplace to offer the best pricing and value for money. All of these channels with the exception of iStore, seem to be sourcing from the same supplier, CellSell PTY LTD which has piqued my curiosity even more. I have reached out to CellSell with a request for a chat on my InConversation Podcast, which they have graciously accepted. So expect more details and perhaps some behind the scenes (if I can twist their arm) in the coming days.
