Africa’s Smartphone Surge: Q3 2023 Sees a 12% Growth, Reveals Report

In the third quarter of 2023, the African smartphone market demonstrated remarkable resilience, boasting a robust 12% year-on-year growth in smartphone shipments despite prevailing challenges in the economy. These challenges encompassed macroeconomic hurdles, import restrictions, and volatile currencies in key markets across the continent.

The latest report from the global research firm Canalys shed light on the dynamics of this growth, revealing that a total of 17.9 million smartphone units were shipped to Africa during this period.

Contrary to the global trend, where the smartphone market experienced a 1% decline during the same period, the African market showcased its buoyancy amidst adversity. One of the standout performers in this landscape was TRANSSION, a mobile group comprising popular brands such as Tecno, Infinix, and iTel. Maintaining its leading position, TRANSSION achieved a remarkable 9% annual growth, securing an imposing 48% market share. The company strategically expanded its presence, particularly in emerging markets, with a focus on price bands below the $100 mark.

Samsung, while facing a 13% decline attributed to challenges in its mid-to-high-end devices, held onto the second position with a 26% market share. On the other hand, Xiaomi and OPPO experienced successful resurgences, boasting impressive annual growth rates of 100% and 259%, respectively. Their success was fueled by substantial investments, especially in the Egyptian market, contributing to positive third-quarter results.

Realme, known for its iconic Number series, contributed to the growth with an impressive 11% growth. At the heart of its success was the C series, hailed as the brand’s ‘Hero range,’ emphasizing innovative high-spec, low-cost pricing.

Canalys Senior Consultant, Manish Pravinkumar, highlighted the resilience of the African market in the face of macroeconomic challenges. Despite rapid currency devaluation, South Africa’s smartphone market exhibited a remarkable 20% growth. This surge was driven by demand for entry-level devices, catering to the extensive prepaid segment. Additionally, mid-tier devices experienced heightened demand, with power outages contributing to this trend. People increasingly prioritized smartphones with quality screens and robust battery life to stay entertained during these outages.

Nigeria’s smartphone market also saw substantial expansion, with TRANSSION playing a pivotal role by offering entry-level devices. Xiaomi successfully positioned itself as an aspirational brand, gaining popularity with products such as the Redmi series A2, Note 12 4G, 12, and 12C. Xiaomi’s strategy proved successful in North African countries like Egypt and Morocco, with Egypt experiencing a double-digit 19% growth in smartphone shipments.

While the third quarter of 2023 witnessed significant growth, Canalys anticipates limited expansion in the region, expecting single-digit growth in 2024. Channel partners and vendors are grappling with challenges such as currency devaluation, increased import taxes, and government initiatives promoting local production, potentially leading to cost and price hikes.

Despite these challenges, the availability of device financing schemes from operators and channel partners could significantly enhance accessibility and boost adoption rates. Looking ahead, the next few years are anticipated to witness a plateau in 2G, while 4G and 5G are positioned for robust growth in the African smartphone market. The landscape continues to evolve, presenting both opportunities and challenges for key players in this dynamic and resilient market.