Despite macroeconomic headwinds, import restrictions, and volatile currencies, Africa’s smartphone market surged 12% year-on-year in Q3 2023, reaching 17.9 million units shipped. This resilience underscores the continent’s strong underlying demand and appetite for mobile technology.
TRANSSION maintained its leading position with a 48% market share, fueled by a 9% annual growth and strategic expansion in emerging markets, particularly through its focus on sub-$100 devices. However, challengers are making inroads. Xiaomi and OPPO saw explosive growth of 100% and 259%, respectively, driven by significant investments in markets like Egypt and their focus on accessible price points. realme’s iconic Number series also delivered an impressive 11% growth, leveraging its “Hero range” C series known for innovative features at low costs.
South Africa and Egypt shine despite currency woes
South Africa’s smartphone market defied rapid currency devaluation with a remarkable 20% surge, fueled by demand for entry-level and mid-tier devices. Load shedding further boosted demand for smartphones with quality screens and robust batteries. Similarly, Egypt witnessed a robust 19% growth after overcoming challenges posed by strict import restrictions in the previous year. Vendors like Xiaomi, with its Redmi series, successfully positioned themselves as aspirational brands in North African markets like Egypt and Morocco.
Strategic moves fuel market expansion
Vendors are leveraging brand assets and global product portfolios to solidify their positions. TRANSSION’s device financing schemes and collaborations with Easybuy not only boosted sales but also pushed for higher average selling prices. HONOR and Xiaomi are introducing diverse products at accessible price points, accelerating the transition from feature phones to smartphones. Notably, Samsung countered the mid-range challenge from Chinese brands by proactively promoting foldable devices in the premium segment. Huawei, facing the absence of GMS, collaborated with local software suppliers in South Africa to enhance the usability of its HMS ecosystem.
A cautious outlook, but long-term optimism
While Q3 2023 witnessed strong growth, Canalys expects a muted single-digit expansion in 2024. Currency devaluation, increased import taxes, and government initiatives promoting local production pose challenges, potentially leading to price hikes. However, device financing schemes from operators and channel partners could mitigate affordability concerns and boost adoption rates. Looking ahead, 2G connectivity is expected to plateau, while 4G and 5G see robust growth. The potential for government 2G network phase-out poses a slight risk but remains unlikely in the near term.
