Smartphone contract prices have surged in South Africa

• Smartphone contract prices have indeed surged in South Africa, with prices increasing by 106% to 114% compared to the regular retail prices of the same devices.
• The surge in contract prices is attributed to the changing economics of mobile services, particularly the decline in revenue from traditional voice and SMS usage, which has been replaced by over-the-top applications, and the increase in data pricing.
• The shift in pricing dynamics has made prepaid options more attractive to customers, with some cases showing that buying a phone outright and using prepaid services can be cheaper in the long run, especially for those who can afford the upfront cost.