Africa's Smartphone Sales Outpaces Feature Phones for the First Time in Q1 2024
Shipments in the $200-$400 price range experienced a healthy rise, while lower-priced devices of <$100 see a decline.
- Africa's smartphone market surges 17.9% YoY, surpassing feature phones for the first time.
- Transsion brands lead the market, but Samsung and Xiaomi gain ground in the mid-range segment.
- Increased consumer preference for feature-rich smartphones drives growth in the $200-$400 price range.
Driven by affordable Chinese brands and innovative financing models, African consumers are making a decisive shift from feature phones towards smartphones, with shipments surging an impressive 17.9% year-over-year in the first quarter of 2024, according to International Data Corporation (IDC).
This 17.9% year-on-year growth with 20.2 million units shipped in the smartphone category saw feature phone shipments decline 15.9% over the same period to a total of 18.8 million units. This surge surpassed feature phone shipments for the first time, marking a significant shift in the region's mobile technology landscape.
This marks the first quarter where smartphone shipments have surpassed feature phone shipments in Africa highlighting a growing consumer preference for advanced mobile technology.
This growth story unfolds despite ongoing macroeconomic challenges and forex issues in the region. The key drivers? Affordable options offered by Chinese brands, coupled with innovative financing models that are making smartphones more accessible than ever.
Notably, consumers are increasingly gravitating towards feature-rich models, with shipments in the $200-$400 price range experiencing a healthy rise, while lower-priced devices of <$100 see a decline.
Looking at specific regions, South Africa, Nigeria, and Kenya led the charge, with South Africa benefiting from competitive Chinese brands. Meanwhile, Nigeria saw success with Transsion and Xiaomi's entry-level devices, and Kenya leveraged innovative financing solutions like Mkopa to boost customers purchasing power solidifying its position as the third-largest smartphone market in Africa.
Looking at brand performance, while Transsion brands (Tecno, Itel, Infinix) remain market leaders, Samsung and Xiaomi are gaining traction in the mid-range segment ($200-$400).
While Africa remains a market with a high share of feature phones, the transition from feature phones is expected to continue to gain momentum. This and rising consumer demand are expected to be key drivers of the region's smartphone market in the coming years.
Overall, IDC predicts sustained growth of 5.7% year-over-year in the coming five years despite potential short-term fluctuations due to economic uncertainties.
