The Zhitong Finance App learned that Canalys published an article stating that in the fourth quarter of 2023, the African smartphone market experienced a significant recovery, with shipments reaching 19.2 million units, an increase of 24% over the previous year. This quarter's surge was driven by increased demand for digital services, booming social media, and the popularity of “buy first, pay later.” Despite various economic challenges (South Africa facing an energy crisis, Nigeria's oil sector reforms, and Egypt experiencing foreign exchange shortages), the region's top three markets have experienced strong growth. More affordable smartphones were launched, with growth of 15%, 63%, and 63% in South Africa, Nigeria, and Egypt, respectively. As consumer confidence increased in the second half of 2023, the region's smartphone shipments reached 68.7 million units throughout 2023, an increase of 6% over 2022.

Manish Pravinkumar, senior consultant at Canalys Dubai, said: “The shift in the African market from feature phones to cost-effective smart phones reflects strong consumer demand for modernization and improved internet connectivity, leading to increased vendor activity in the entry-level market. Shipments of ultra-low-end (under $100) smartphones increased 43% year over year in the fourth quarter of 2023. This growth was mainly driven by Voice (688036.SH), which launched a new low-end model in the second half of 2023. Despite the decline in some markets, South Africa remains critical to Samsung (SSNLF.US). Its A series models, the A14 series and A04 series, became key drivers, contributing 30% of Samsung's shipments in Africa. Xiaomi (01810) is actively expanding its product range, including the newly launched Redmi 13 series, to cater to consumers looking for a better look. “Xiaomi's success is due to its marketing strategy, which includes significant investment in social media marketing, collaboration with KOLs, and online promotions, making it a favorite brand for young tech enthusiasts.”

Pravinkumar added: “Due to digitalization and increased use of social media, consumers in Africa want higher specifications, particularly running memory and storage space, in entry-level devices. New brands are using diverse products and partnerships to gain a foothold in specific markets, while established players are chasing untapped opportunities in emerging markets. OPPO experienced strong growth of 156%, mainly due to the expansion of markets in Arabic-speaking countries such as Egypt and Morocco. Although not in the top five, Huawei achieved an impressive 371% growth, particularly driven by the South African market. This highlights Huawei's success in providing smartphones at various price points supported by HMS, effectively catering to different consumer preferences. Although some markets in sub-Saharan Africa may have reached the maturity level, they have been actively seizing growth opportunities, particularly in the three major North African markets — Morocco, Egypt, and Algeria — all averaged around 94% in the fourth quarter.”

Pravinkumar continued, “Demand for smartphones in Africa will continue to surge as the technology model changes. As disposable income is limited in many countries, vendors, governments, and telecom operators will actively address the high cost of smartphone affordability and internet through innovative solutions. In the sub-Saharan African market, governments and operators are working to provide affordable 4G smartphones, such as Airtel Rwanda (Airtel Rwanda), to improve internet access. Countries such as Kenya and Zambia are even setting up smartphone manufacturing plants to lower product prices. However, the region will continue to face macro-challenges brought about by changes in government tax and import policies. Channel partners are also concerned about the potential impact of rising import costs and currency fluctuations over the next year on profit margins. “Canalys is cautiously optimistic about the African smartphone market in 2024, which is expected to achieve single-digit growth due to increasing initiatives in product marketing and various financing options.”