Canalys: Africa's smartphone market is expected to grow by 4% in 2024

According to the latest report from Canalys, a world-renowned third-party technology analysis agency, in the first quarter of 2024, smartphone shipments in Africa surged 24% year-on-year to 18.2 million units. This is mainly due to new product launches from major suppliers and easing inflation in most markets. This also placed Africa among the regions with the third fastest smartphone growth globally during the quarter. Compared with the first quarter of 2023, the economic growth rate of most countries in Africa has increased.

Despite exchange rate fluctuations and economic uncertainty, African smartphone shipments bucked the trend and surged

The sub-Saharan African smartphone market is growing rapidly, with Nigeria performing well, with year-on-year growth 42%. Although the exchange rate of the Nigerian currency (naira) shows a volatile trend, market demand remains strong due to the development of telecommunications technology, the steady improvement of the financial industry, and favorable government initiatives (such as the cashless policy of the Central Bank of Nigeria), and the growth of the South African market is 19 %, driven by strong demand from the prepaid segment, which accounts for a significant market share, reflecting consumers' preference for affordable phones in an environment of high interest rates and power constraints.

#In contrast, smartphone shipments in Kenya fell 7% due to higher import duties and value-added tax. In addition, the promotion of locally assembled mobile phones is also facing the challenge of rising retail prices. In North Africa, Egypt leads the way with 39% growth, supported by the stable Egyptian pound and Gulf Cooperation Council (GCC) funding. Algeria grew by 16% driven by strong consumption and investment, while Morocco saw the market decline by 17% due to higher tariffs.

Xiaomi and Transsion drive growth in the low-end market, while other manufacturers need to seek to regain their footing

Manish Pravinkumar, senior analyst at Canalys in Dubai, said: "As mass-market players strengthen product offerings, we expect The ultra-low-end segment (sub-US$100) will grow by 13% in the first quarter of 2024, with Transsion maintaining strong growth driven by entry-level models and consumer upgrades from low-ASP African markets. Momentum.

It is worth noting that Xiaomi achieved an astonishing 333% growth in the ultra-low-end market, thanks to the hot sales of the Redmi digital series and A series models. . Under the dual pressure of exchange rate fluctuations and declining profits, Xiaomi's continued investment has contributed to this significant growth and will continue to boost channel confidence in the near future.

#At the same time, Realme re-entered the entry-level market by launching a new Note series and adopting a "value for money" strategy. Although OPPO posted a slight decline of 1%, it is expected to recover to its pre-2022 level by strengthening its entry-level product portfolio. Shipment levels. On the other hand, although Samsung’s low-end product shipments have declined, it will seek to rationally adjust model pricing in South Africa and Egypt to revive growth momentum.”

Cautiously optimistic, moderate. Economic activity indicates long-term growth potential

Pravinkumar said: “Affordable smartphones will enable Africans to actively participate in the digital economy, driving long-term growth for governments, telecom operators and smartphone manufacturers. By 2025, Supported by various plans by regional governments and telecom operators, 4G penetration is expected to reach nearly 75% of shipments. Currently, Africa has the highest feature phone penetration rate in the world, reaching 46%. The shift is expected to drive continued market growth, and equipment financing plans will play an important role in further driving smartphone penetration.

##In the short term, Canalys predicts that manufacturers will face challenges due to exchange rates. Operational challenges posed by volatility, but inflationary pressures in various markets are likely to be alleviated, with the market expected to achieve 4% growth in 2024. Sustainable market practices will be critical for manufacturers in the long term, such as local manufacturing in Egypt. , may also be applicable to markets such as Nigeria. In addition, alignment with government-led digitalization and consumer technology promotion plans is also critical for continued development.

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