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Increase in shipments of budget Chinese smartphones into Africabigintech

Increase in shipments of budget Chinese smartphones into Africabigintech

Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-03-27 04:33:39

The International Data Corporation (IDC) recently released a report indicating a 12 per cent year-on-year increase in smartphone shipments in Africa during the fourth quarter of 2023, reaching a total of 19.8 million units. This growth was attributed to the rising popularity of low-end Chinese brands in the region, despite challenges such as high inflation, local currency devaluations, and foreign exchange shortages. On the other hand, the feature phone market in Africa experienced a decline of 7.8 per cent during the same period, with total shipments amounting to 20.9 million units.

George Mbuthia, an analyst at IDC, highlighted that Kenya had the highest growth rate in terms of smartphone shipments in Q4, partly due to the availability of mobile phone financing schemes that allowed consumers to purchase new devices through installment payments. Nigeria also recorded significant growth, driven by the strong presence of Chinese brands in the market. In contrast, South Africa faced a decline in smartphone shipments due to the challenging economic environment and delays in shipments at the country’s ports.

The Nigerian Communications Commission (NCC) reported that the number of type-approved handsets in Nigeria reached 2,197 as of January 2024, indicating a steady increase in the approval of new devices. Chinese mobile manufacturers, especially brands under the Transsion Group like Tecno, Infinix, and iTel, continued to dominate the market, accounting for nearly 80 per cent of all mobile devices in Nigeria. IDC also confirmed the dominance of Transsion devices in the African smartphone market, offering affordable options priced at around $100. Samsung and Xiaomi followed closely behind in terms of market share.

Looking ahead to 2024, IDC forecasted a modest year-over-year growth of 2.8 per cent in smartphone shipments in Africa. Senior Research Manager at IDC, Ramazan Yavuz, noted that handset renewal cycles have slowed down as smartphones become more advanced and durable. Despite this, the transition from feature phones to smartphones is expected to drive growth in the short and medium term, while the adoption of AI phones and 5G technology will fuel long-term growth in the smartphone market in Africa.

Overall, the African smartphone market continues to show resilience and promising growth potential, driven by the increasing popularity of affordable Chinese brands, innovative financing schemes, and the gradual transition from feature phones to smartphones. As the region embraces new technologies and connectivity solutions, the outlook for the smartphone market in Africa remains positive.

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