IN the third quarter of 2023, Africa’s smartphone market demonstrated robust recovery for the second consecutive quarter, defying macroeconomic challenges and import restrictions. According to the latest analysis by the leading global technology analyst firm Canalys, the region experienced an impressive 12 percent year-on-year growth in smartphone shipments, reaching a total of 17.9 million units.
Leading the market was TRANSSION, maintaining its dominant position with a 48 percent market share and achieving a 9 percent annual growth. The company strategically expanded its footprint, particularly in emerging markets, with a focus on price bands below $100.
Despite a 13 percent decline in shipments due to challenges in its mid-to-high-end devices, Samsung retained its second position with a 26 percent market share. Xiaomi and OPPO, on the other hand, experienced successful comebacks, with annual growth rates of 100 percent and 259 percent, respectively. Their resurgence was fuelled by significant investments, especially in the Egyptian market, contributing to positive Q3 results.
realme’s iconic Number series played a crucial role in achieving an impressive 11 percent growth. The brand’s ‘Hero range,’ particularly the C series, stood out for its innovative high-spec, low-cost pricing.
Canalys Senior Consultant, Manish Pravinkumar, highlighted the market’s resilience in the face of macroeconomic challenges. Despite rapid currency devaluation, South Africa’s smartphone market exhibited remarkable growth of 20 percent. This surge was driven by the demand for entry-level devices, catering to the extensive pre-paid segment. Additionally, mid-tier devices experienced heightened demand, with the prevalence of load-shedding contributing to the trend, as consumers prioritised smartphones with quality screens and robust battery life during power outages.
Nigeria’s smartphone market also expanded substantially, with TRANSSION playing a pivotal role by offering entry-level devices, and Xiaomi positioning itself successfully as an aspirational brand. The Redmi series A2, Note 12 4G, 12, and 12C gained popularity, following a similar successful strategy in North African countries like Egypt and Morocco, where Xiaomi experienced double-digit 19% growth in smartphone shipments.
Pravinkumar emphasised that vendors are leveraging their brand assets and global product portfolios to augment their market positions in Africa. Initiatives such as TRANSSION’s Takenow device financing schemes and collaborations with Easybuy have not only boosted sales but also advocated for an increase in Average Selling Price (ASP). HONOR and Xiaomi are making significant impacts by introducing diverse products at accessible price points, aiming to expedite the transition from basic feature phones to smartphones.
Despite challenges, Samsung maintained its A-series to drive volume and proactively promoted foldable devices to secure a prominent position in the premium segment. Huawei collaborated with local software suppliers in South Africa to enhance the usability of HMS and address the lack of GMS.
Looking ahead, Canalys foresees limited expansion in the region, expecting single-digit growth in 2024. Channel partners and vendors face challenges such as currency devaluation, increased import taxes, and government initiatives promoting local production, potentially leading to cost and price hikes. However, device financing schemes from operators and channel partners could enhance accessibility and boost adoption rates.
The report concludes that Africa’s smartphone market narrative is a compelling story of overcoming challenges with resilience and capitalizing on opportunities through strategic partnerships, channel dynamics, and a transforming consumer landscape. As the market evolves, vendors must navigate these complexities with agility and foresight to secure a pivotal position in this burgeoning market.