In the face of economic challenges, the African smartphone market has witnessed a robust 12% year-on-year growth in smartphone shipments during the third quarter of 2023, as reported by global research firm Canalys. Despite macroeconomic hurdles, import restrictions, and currency volatility in key markets, a total of 17.9 million smartphone units were shipped to the continent during this period.
Contrary to the global trend, where the smartphone market experienced a 1% decline, the African market showcased resilience and positive growth.
Key Players and Market Dynamics
- TRANSSION Dominates: The mobile group, comprising Tecno, Infinix, and iTel brands, maintained its leadership position, achieving a remarkable 9% annual growth and securing a dominant 48% market share. TRANSSION strategically focuses on expanding its footprint in emerging markets, particularly targeting price bands below US$100.
- Samsung and Resurging Brands: Despite a 13% decline due to challenges in mid-to-high-end devices, Samsung retained the second position with a 26% market share. Xiaomi and OPPO exhibited impressive annual growth rates of 100% and 259%, respectively, driven by substantial investments, especially in the Egyptian market.
- Realme’s Impact: Realme’s Number series, particularly the C series, contributed to an 11% growth. The brand’s focus on innovative high-spec, low-cost pricing played a pivotal role in its success.
Market Resilience and Growth Factors
Canalys Senior Consultant, Manish Pravinkumar, highlighted the resilience of the African market amid macroeconomic challenges. Notably, South Africa’s smartphone market demonstrated a remarkable 20% growth, driven by demand for entry-level devices and mid-tier devices. The prevalence of power outages contributed to the demand for smartphones with quality screens and robust battery life.
Nigeria’s smartphone market expanded significantly, with TRANSSION playing a crucial role in offering entry-level devices. Xiaomi positioned itself successfully as an aspirational brand, gaining popularity with various products.
Future Outlook and Anticipated Challenges
While the African smartphone market experienced substantial growth in Q3 2023, Canalys anticipates limited expansion in the region in the coming years, expecting single-digit growth in 2024. Challenges such as currency devaluation, increased import taxes, and government initiatives promoting local production may pose obstacles for channel partners and vendors.
Despite challenges, the availability of device financing schemes from operators and channel partners is expected to enhance accessibility and boost adoption rates. Looking ahead, the market is poised for a plateau in 2G, while 4G and 5G technologies are anticipated to witness robust growth.
