THE smartphone market in Africa experienced a decline of 3.4 percent quarter on quarter (QoQ) in the first quarter of 2023, reaching a total of 17 million units, according to a report released on Friday. The report, published by the International Data Corporation (IDC), highlighted the impact of rising inflation in regional countries, marking the lowest level since 2020.
Chinese brands from Transsion, including Tecno, Itel, and Infinix, maintained their dominance in smartphone shipments across Africa, although they also experienced a decline in units. Samsung secured the second position, followed by Xiaomi, as reported in the study released in Nairobi, Kenya.
The IDC attributed the decline in smartphone demand to rising inflation and local currency depreciations against the US dollar, which adversely affected consumer purchasing power in the continent.
George Mbuthia, a senior research analyst at the IDC, explained that smartphones in Africa faced a continuous decline throughout 2022 due to weak consumer demand. This trend has been further exacerbated by rising inflation and increased device prices. Mbuthia also noted that the average selling price (ASP) of smartphones grew QoQ due to higher import costs and the shift of many vendors’ flagship devices to the premium segment, equipped with 5G technology.
The report also highlighted a decline in shipments of feature phones across Africa, although not as significant as that of smartphones. Feature phones remain relatively affordable and continue to be a preferred secondary device option for many consumers.
Ramazan Yavuz, a senior research manager at the IDC, expressed optimism regarding a potential recovery in demand, particularly in the second half of 2023, as uncertainty over a global recession diminishes. Yavuz explained that greater currency stability against the dollar would lead to more stable pricing and lower import costs, subsequently reducing the ASPs in the market. These factors are expected to stimulate slight growth in the smartphone market throughout the rest of the year.
The IDC report also highlighted the performance of Africa’s top three smartphone markets. South Africa and Nigeria experienced a decline in shipments due to seasonality issues and weak demand. However, the Egyptian market showed growth. Egypt’s recovery was attributed to an increase in local assembly and the government’s decision to drop its ‘letters of credit’ requirement for vendors, both of which have contributed to the market’s rebound from a low base.