Tuesday, April 30, 2024

‘Affordable Chinese phones’ drive smartphone market growth

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The International Data Corporation (IDC) reported a 12% year-on-year increase in smartphone shipments in Africa during Q4 2023, totaling 19.8 million units, with Chinese devices in the lead.

This growth was attributed to strong demand for low-end Chinese brands across the region, including Nigeria, despite challenges such as high inflation and currency devaluations across a number of economies in Africa. Conversely, feature phone shipments decreased by 7.8% to 20.9 million units over the same period.

Kenya saw the highest growth rate in smartphone shipments, courtesy of mobile phone financing schemes enabling consumers to purchase new smartphones through long-term payments.

An AI-generated image shows three women looking at their smartphones as IDC reports an increase in smartphone shipments across Africa. I mage credit: Gencraft.

In Nigeria, the Nigerian Communications Commission (NCC) has approved 42 new handsets as of January 2024, bringing the total to 2,197 approved devices for sale across the country. Chinese manufacturers, particularly Transsion Group with brands like Tecno, Infinix, and Itel, dominate the market, controlling around 80% of the mobile device market in Nigeria.

Nigeria: Chinese phones are market leaders

Nigeria followed with the second-largest growth rate, driven by Chinese brands. However, South Africa experienced a decline due to economic challenges and shipment delays at ports.

In Nigeria, the Nigerian Communications Commission (NCC) has approved 42 new handsets as of January 2024, bringing the total to 2,197 approved devices for sale across the country. Chinese manufacturers, particularly Transsion Group with brands like Tecno, Infinix, and Itel, dominate the market, controlling around 80% of the mobile device market in Nigeria.

Transsion devices continued to dominate Africa’s smartphone market with low-end devices priced at $100, followed by Samsung and Xiaomi. IDC forecasts a 2.8% year-over-year growth in smartphone shipments for 2024.

While handset renewal cycles have slowed due to better features and durability of smartphones, the transition from feature phones to smartphones, along with AI and 5G adoption, will drive smartphone growth in Africa in the long term, according to IDC.

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