Skyrocketing: Smartphone Prices Surge 30% Amidst Soaring Tax Rates

InfoStride News has underscored the detrimental impact of taxation and duty levies on smartphone adoption in Nigeria and Sub-Saharan Africa, according to the Global System for Mobile Telecommunication Association (GSMA).

In its recent report, ‘The Mobile Economy Sub-Saharan Africa (2023),’ GSMA revealed that taxes and duties contribute to a 10 to 30 percent increase in smartphone costs across Africa, with variations by country. This escalation in costs presents a significant barrier to accessibility for a substantial portion of the population in the region.

The report specifically highlighted the challenges faced by manufacturers in Sub-Saharan Africa (SSA), particularly in the 5G and 4G markets, where high manufacturing costs hinder the production of affordable devices, consequently limiting market share.

A noteworthy point raised by GSMA is the impact of smartphone affordability on mobile internet usage in the region. Despite extensive coverage, approximately 60 percent of Africa’s population lacks mobile internet access due to the prohibitive costs associated with smartphones.

To counter these challenges, the report underscored the collaborative efforts between mobile operators and manufacturers. These joint initiatives have led to a reduction in the average selling price of smartphones in recent years, contributing to increased accessibility.

Chinese brands such as Tecno, Itel, and Infinix have played a pivotal role in this accessibility revolution by introducing devices priced under $100. The influx of such affordable options has significantly broadened the market and made smartphones more attainable for a larger segment of the population.

Furthermore, operators are actively engaging in partnerships with manufacturers to manage costs effectively. This includes offering financing plans to customers, aligning with ongoing efforts to boost digital penetration throughout the region.

In conclusion, InfoStride News highlights the GSMA report’s findings, shedding light on the intricate dynamics of smartphone adoption in Nigeria and Sub-Saharan Africa. The collaborative efforts between operators and manufacturers, coupled with the influx of affordable devices, are pivotal in overcoming barriers and fostering increased digital inclusion in the region.