Smartphone shipments into Africa surpass 20 million during Q2 of 2018

According to the latest insights from International Data Corporation (IDC), a total of 22.4 million smartphones were shipped in Africa during the second quarter of 2018, thanks to the growing popularity of low-end to mid-range devices.

The global technology research and consulting firm’s Quarterly Mobile Phone Tracker released on September 18 showed that Africa’s smartphone shipments increased 9.8% quarter on quarter (QoQ) and 6.0% year on year (YoY) in Q2 2018.

Tecno and co-leading the African smartphone race

Chinese-based Transsion brands — Tecno, Itel, Infinix and Spice — continued to lead the continent’s smartphone race in Q2 2018, accounting for 35.4% of shipments, while Samsung followed in second place with 23.2% market share.

By contrast, the feature phone market was down 1.1% QoQ and 5.8% YoY in Q2 2018, but — with shipments totalling 31.4 million units — these devices still constitute a 58.3% share of Africa’s overall mobile phone market as they cater to the needs of the continent’s huge low-income population (mainly in rural areas) by providing basic mobile communications that are priced very competitively.

Telco and Itel continued to lead the feature phone category in Q2 2018 with a combined unit share of 59.9%, followed in third place by HMD at 9.0%. According to the IDC report, Africa’s combined mobile phone market totalled 53.8 million units in Q2 2018, with shipments up 3.2% QoQ but down 1.2% YoY.

Nigeria and South Africa markets show steady growth

The continent’s two biggest markets — Nigeria and South Africa — saw a marked improvement in the performance of their overall mobile phone markets, posting YoY growth of 13.0% and 25.0%, respectively, reports IDC.

“[Nigeria] saw smartphone shipments of 2.7 million units in Q2 2018, up 15.8% YoY, with strong marketing support from telecom operators for most brands proving instrumental,” says Arnold Ponela, a research analyst at IDC, adding the country’s “ongoing currency issues and falling consumer purchasing power” suggest that it may not be ready for a sustained surge in smartphone shipments.

On the other hand, South Africa remains the continent’s most developed telecommunications market, with smartphone shipments up 17.4% YoY in Q2 2018 to a total of 3.4 million units, according to the report.

“Numerous new entrants to the South African market are now offering affordable smartphones that boast very similar features to the leading brands,” says Ponela. “As such, we expect the country’s migration away from feature phones to continue at a progressive pace. This transition from feature phones to smartphones is reflected by the fact that the market continues to be dominated by low-end to mid-range devices priced below $150.”

4G LTE networks on the rise

IDC’s research shows that 4G LTE networks are spreading their reach in Africa, with shipments of 4G LTE devices increasing 11.8% QoQ in Q2 2018 to constitute 62.6% of the smartphone market.

“Despite a drop in the prices of entry-level 4G phones, 2G and 3G mobile devices remain far more economical, making it difficult for operators to migrate clients over to newer technologies,” says Ramazan Yavuz, a research manager at IDC.

“Price sensitivity means that many African consumers prefer to stick with 3G phones, and this is likely to continue until 4G devices fall to a price point where they are affordable to a much larger segment of the continent’s consumer base,” he added.

Based on forecasts, IDC expects Africa’s overall mobile phone market to grow 2.6% QoQ in Q3 2018, with overall shipments to increase slightly through 2018, leading to YoY growth of 0.4% for the year as a whole.

“IDC predicts that 5G phones will reach the market in 2020 when rollouts of 5G networks will start in select African countries,” says Yavuz. “However, demand for feature phones is unlikely to be impacted significantly as these devices will continue to serve a purpose in areas with no LTE coverage.”