A latest report by the global research firm, Canalys indicates that smartphone shipments in Nigeria and other parts of Africa recorded 12 percent year-on-year growth in the third quarter of 2023 amid the economic challenges.
The report found that a total of 17.9 million units of smartphones were shipped to the continent in the period under review.
This came despite the macroeconomic challenges, import restrictions, and volatile currencies in key markets, including Nigeria. Canalys, however, revealed that the global smartphone market declined by one percent for the same period.
The report showed that TRANSSION, the mobile group comprising Tecno, Infinix, and iTel brands, maintained its leading position, and achieved nine per cent yearly growth, securing a dominant 48 percent market share.
Canalys also revealed that the company is strategically expanding its footprint, especially in emerging markets, focusing on price bands below $100. Samsung, hit by a 13 per cent decline due to challenges in its mid-to-high-end devices, retained second position with a 26 per cent market share.
Xiaomi and OPPO’s successful resurgence with impressive annual growth rates of 100 per cent and 259 per cent, respectively were fueled by significant investments, especially in the Egyptian market, which contributed to positive Q3 results.
Commenting on the report, Canalys Senior Consultant, Manish Pravinkumar, observed that the African market has demonstrated strong resilience in demand and supply amid macroeconomic challenges.
“Despite rapid currency devaluation, South Africa’s smartphone market exhibited a remarkable growth of 20 per cent. This surge was fueled by the demand for entry-level devices, particularly catering to the extensive pre-paid segment.
“Additionally, mid-tier devices experienced heightened demand, the prevalence of load-shedding contributed to this trend, as people increasingly prioritize smartphones with quality screens and robust battery life to keep them entertained during power outages. Nigeria’s smartphone market expanded substantially, with TRANSSION playing a pivotal role by offering entry-level devices and Xiaomi successfully positioning itself as an aspirational brand for many consumers, gaining popularity with products such as the Redmi series A2, Note 12 4G, 12, and 12C.
“A strategy was also successful for Xiaomi in North African countries such as Egypt and Morocco. Egypt experienced double-digit 19 per cent growth in smartphone shipments, signalling vendors have successfully addressed the challenges posed by strict import restrictions in the previous year,” he said.
However, while witnessing significant growth in the third quarter of 2023, Canalys said it foresees limited expansion in the region, expecting single-digit growth in 2024.
Channel partners and vendors are grappling with challenges such as currency devaluation, increased import taxes, and government initiatives promoting local production, potentially leading to cost and price hikes.
Nevertheless, the availability of device financing schemes from operators and channel partners could significantly enhance accessibility and boost adoption rates. Looking forward, the next few years are anticipated to witness a plateau in 2G, while 4G and 5G are positioned for robust growth.
Source: The Guardian
