African Smartphone Market Surges 12% Year-on-Year in Q3 2023 Despite Currency Challenges And Import Restrictions

In a recent report by Canalys, the African smartphone market saw a 12% surge year-on-year in the third quarter of 2023.

Despite macroeconomic headwinds, volatile currencies in key markets, and import restrictions, the region experienced an impressive growth in smartphone shipment, totaling up to 17.9 units.

In the report, Transsion, a Chinese smartphone manufacturer provider of smart devices and mobile services for consumers in global emerging markets, whose brands include Tecno, Itel, and Infinix, maintained its leading position, and achieved 9% annual growth, securing a dominant 48% market share.

The company is strategically expanding its footprint, especially in emerging markets, focusing on price bands below US$100.

Coming in second position is Samsung which recorded total shipments of 4.6 million, with a market share of 26%. The company was hit by a 13% decline due to challenges in its mid-to-high-end devices.

Followed next is Xiaomi, which successfully positioned itself as an aspirational brand for many consumers, gaining popularity with products such as the Redmi series A2, Note 12 4G, 12, and 12C. This strategy is also successful for Xiaomi in North African countries such as Egypt and Morocco. Egypt experienced a double-digit 19% growth in smartphone shipments, signaling vendors have successfully addressed the challenges posed by strict import restrictions in the previous year.

Speaking on the report, Canalys Senior Consultant, Manish Pravinkumar said that the African market has demonstrated strong resilience in demand and supply amid macroeconomic challenges.

In his words,

“Despite rapid currency devaluation, South Africa’s smartphone market exhibited a remarkable growth of 20%. This surge was fueled by the demand for entry-level devices, particularly catering to the extensive pre-paid segment. Additionally, mid-tier devices experienced heightened demand, and the prevalence of load-shedding contributed to this trend, as people increasingly prioritize smartphones with quality screens and robust battery life to keep them entertained during power outages.

“Nigeria’s smartphone market expanded substantially, with TRANSSION playing a pivotal role by offering entry-level devices and Xiaomi successfully positioning itself as an aspirational brand for many consumers, gaining popularity with products such as the Redmi series A2, Note 12 4G, 12, and 12C. Vendors’ local teams are leveraging the strengths of their brand assets and global product portfolios to augment market positions in Africa.

“TRANSSION, through initiatives such as the Takenow device financing schemes for TECNO and collaborations with Easybuy, has 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 prices, and points. This strategic move aims to expedite the transition from basic feature phones to smartphones, injecting excitement into markets.

“Meanwhile Samsung maintained its A-series to drive volume. And, confronted with the challenge of consumers preferring mid-range devices from Xiaomi, OPPO, and Realme, Samsung proactively promoted foldable devices to secure a prominent position in the premium segment. Huawei has been collaborating with local software suppliers in South Africa, continually enhancing the usability of HMS and tackling the lack of GMS.”

While recording significant growth in the third quarter of 2023, Canalys foresees limited expansion in the African region, expecting single-digit growth in 2024. The firm believes that the availability of device financing schemes from operators and channel partners could significantly enhance accessibility and boost adoption rates.