Chinese brands strengthen hold on African smart phone market in 2023

March 12, 2024 in Business, Companies, Markets, Technology & Telecoms by Editor

Transsion brands, (Tecno, Itel, Infinix) continued to dominate Africa’s smartphone market with their ultra-low-end devices (below $100), which were most marketable to a consumer base challenged by low purchasing power due to reduced income and the growing dollar rate.

Chinese brands dominated the African market as latest figures showed shipments to the continent grow 12.5% year-on-year (YoY) in the fourth quarter of 2023 to 19.8 million units.

Amid a period of high inflation, local currency devaluations, and foreign exchange shortages, the relatively lower priced Chinese brands continued to gain popularity however the feature phone market saw shipments decrease 7.8% over the same period to total 20.9 million units.

According to findings published by International Data Corporation (IDC), a global provider of market intelligence and advisory services, Transsion brands (Tecno, Itel, Infinix) continued to dominate Africa’s smartphone market with their ultra-low-end devices selling at less than $100.

These are the most marketable to a consumer base challenged by low purchasing power due to reduced income and the growing dollar rate. Samsung and Xiaomi followed the Transsion brands in second and third place, respectively.

George Mbuthia, a senior research analyst at IDC said, “Kenya recorded the region’s highest YoY growth rate in terms of smart phone shipments in Q4 2023, coming from a low base when the market’s dominant brands reduced their shipments in Q4 2022 in an effort to manage high inventory levels.

He said, “Local assembly initiatives for low-end smart phones (below $200) also contributed to the strong growth seen in Kenya. In addition, mobile phone financing schemes have enabled consumers to acquire new smart phones by enabling payment installments over a long time period.”

Earlier this year, MiOne, a Chinese phone manufacturer which set up an assembly plant in Mbale industrial park, launched two new smart phones available in two versions–U1 and Joy 9. MiOne first entered the Ugandan market in February 2023 with feature phones and hopes to maintain its steadily growing market share by adding locally-made smart phones.

Nigeria overcame market volatility and a significant currency devaluation to record Africa’s second-highest growth rate thanks to a strong push by Chinese brands. South Africa recorded a YoY decline due to the challenging economic environment and partly due to delays in shipments at the country’s ports.

The IDC report indicates shipments of ultra-low-end smart phones (below $100) to the region were up 5.2% YoY in Q4 2023, while shipments of low-end versions, (between $100 and $200) and midrange (between $200 and $400) devices increased 18.9% and 16.6%, respectively, indicating strong demand for budget-friendly smart phones.

Looking ahead, IDC forecasts YoY growth in smart phone shipments of 2.8% for 2024.  Ramazan Yavuz, a senior research manager at IDC said, “Handset renewal cycles have slowed as smart phones carry better features, increasing their longevity, and are more durable. However, in Africa, the transition from feature phones will support smart phone growth in the short and medium term, while AI phones and 5G adoption will fuel Africa’s smart phones growth in the long term.”