Despite rising demand for smartphones in Africa, feature phones still dominate the market, holding 52 percent of the share due to affordability challenges for many consumers.
Smartphones have become essential for millions of Africans, offering access to financial services, productivity tools, and entertainment. However, while adoption is growing, the cost of these devices remains prohibitive for many. A recent report by Canalys revealed that 68.7 million smartphones were shipped across the continent by the end of 2023, reflecting a 6 percent growth.
In the second quarter of 2024, 17.8 million smartphones were shipped, with devices priced under $100 accounting for 33 percent of sales. Canalys Senior Analyst Manish Pravinkumar highlighted the ‘serious affordability gap’ between feature phones, which can cost as little as $20, and smartphones priced around $100.
‘Affordability remains a key obstacle to smartphone sales. While phones are a necessity for accessing services, many consumers are still unable to afford them due to economic factors,’ said Pravinkumar.
Macroeconomic challenges
Macroeconomic issues, such as inflation and currency devaluation, have further complicated smartphone affordability. Yang Wang, Senior Analyst at Counterpoint Research, noted that the post-pandemic boom in smartphone demand has been followed by a sharp dip due to these financial pressures.
‘The average selling price (ASP) of smartphones in Africa reached $201 this year, a significant rise from $130 in 2021. Manufacturers have increased prices to cater to demand for more feature-rich devices, such as those with better screens, cameras, and battery life,’ Wang explained.
Impact of 5G and local manufacturing
Although 5G smartphone penetration is still in its infancy in Africa, with just 34 percent of devices supporting 5G, industry leaders are exploring ways to make these devices more accessible. Qualcomm’s new Snapdragon 4s (Gen 2) processor aims to bring 5G to more affordable smartphones, and manufacturers like Xiaomi are planning to roll out these devices in developing markets.
Local manufacturing could also play a crucial role in making smartphones more affordable by eliminating import tariffs. However, as Pravinkumar pointed out, Africa lacks the large-scale local production seen in markets like India and Vietnam. ‘Governments need to provide the necessary incentives for manufacturers to produce affordable smartphones locally,’ he added.
Challenges and opportunities
While smartphones are becoming more common, the rising cost of both devices and data remains a significant hurdle. ‘If operators could lower data costs, smartphone penetration would increase,’ said Pravinkumar. Wang agreed, noting that the virtuous cycle of smartphone ownership and data consumption could help bring prices down.
Despite these challenges, there is optimism for Africa’s digital future. With the right collaboration between governments, operators, and vendors, the continent could see greater access to affordable smartphones, unlocking numerous opportunities for development in the digital age.
Credit: Africabriefing
