Pepkor Quietly Dominates South Africa’s Cellphone Market with 30 Million SIMs and Soaring Smartphone Sales

In an era of flashy tech launches and competitive mobile networks, one company has quietly become a giant in South Africa’s cellular space. Pepkor Holdings, best known for its value retail brands, has reported a major surge in mobile handset sales and SIM activations — positioning itself as the dominant player in the country’s prepaid phone market.

According to the group’s interim results for the six months ending 31 March 2025, Pepkor sold an impressive 6.8 million cellular handsets, marking a 17% year-on-year increase. Even more striking is its growing market share: eight out of every ten prepaid phones sold in South Africa now come from Pepkor’s stores, up from 7.5 just months ago, according to market research firm GfK.

Affordable Smartphones Driving Growth

Affordability continues to be Pepkor’s secret weapon. The company says 65% of the handsets it sold were smartphones, a significant achievement in a price-sensitive market. This growth has been enabled by an expanding range of affordable devices and an unmatched distribution network across the country.

Its retail chains, particularly Pep and Ackermans, are seeing massive traction. Pep Cellular alone sold 4 million handsets, with smartphones making up half of those. Ackermans added another 1.3 million devices — 80% of them cellphones.

SIM Card Sales Hit 30 Million

Equally notable is the group’s reach in SIM cards. By March 2025, 30 million active SIM cards had been sold through Pepkor’s channels — a 5% increase. These SIM activations aren’t just add-ons; they’re a critical part of Pepkor’s long-term mobile revenue strategy.

With SIM card sales fueling recurring revenue, the company is building a cellular ecosystem that stretches far beyond initial handset purchases.

FoneYam Rental Model Gains Traction

A major part of this growth story is FoneYam, Pepkor’s handset rental service launched in 2024. This innovative model allows customers to access smartphones through affordable monthly rentals, making it easier for low-income consumers to stay connected.

By March 2024, FoneYam had over 1.5 million active customers, with 165,000 new activations each month across 1,000 participating stores. The rental book had reached R258 million, showing the potential of recurring income through tech leasing — a rare approach in South African retail.

Homegrown Brands, High Margins

Not only is Pepkor selling more phones, but it’s also profiting smartly. Devices from in-house brands like Stylo and Premio now make up 18% of its product mix, with notably higher profit margins than other brands.

Without much fanfare, Pepkor has become the backbone of South Africa’s prepaid mobile economy. Selling seven out of every ten prepaid smartphones, and offering innovative products like FoneYam, the group is proving that you don’t need to shout to be heard — especially when 30 million SIM cards are already doing the talking.

{Source: My Broad Band}

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