African smartphone market experiences modest growth

The African smartphone market experienced modest growth in the second quarter of 2024, with shipments rising by 6 per cent year-on-year to reach 17.8 million units, according to the latest research from Canalys. 

This marks a deceleration from the robust double-digit recovery observed over the previous three quarters, as the market faces headwinds from macroeconomic volatility. 

Heightened inflation risks, renewed currency pressures, and ongoing geopolitical tensions, coupled with political stability concerns related to elections, have contributed to the slowdown.

North Africa outperformed sub-Saharan Africa in the smartphone market during this period, with the region experiencing double-digit growth. 

Algeria led the way with a remarkable 52 per cent increase in shipments, despite facing challenges related to imports. 

Egypt also posted a significant 27 per cent rise in shipments, bolstered by the stability of the local currency and the government’s emphasis on local manufacturing. 

This environment has attracted major players such as Xiaomi, vivo, and Samsung, with HMD recently entering talks and attention now turning to Apple. 

However, Morocco’s market suffered a steep 24 per cent decline, as vendors struggled with import issues following a rise in customs duties earlier this year.

In sub-Saharan Africa, only South Africa managed to achieve positive growth, with a 13 per cent increase in smartphone shipments. 

This growth was influenced by the post-election environment, which has reshaped the country’s political landscape, offering both uncertainty and potential for reform. 

Nigeria, the continent’s leader in shipment volumes, recorded a modest 5 per cent increase. 

The country’s growth was hindered by persistent inflationary pressures, currency risks, sluggish GDP growth, and declining disposable income. 

Meanwhile, Kenya, East Africa’s trade hub, saw a 22 per cent decline in shipments, driven by ongoing political tensions within the country.

Moreover, competition in Africa’s budget smartphone market intensified during the second quarter of 2024. 

Vendors took advantage of the cost benefits carried over from the first half of the year, leading to an impressive 42 per cent growth in the sub-$100 segment, which accounted for 33 per cent of total shipments.

“With the rising cost of living, consumers are gravitating toward budget-friendly options. Q2 2024 saw one of the lowest average selling prices in the last eleven quarters,” said Canalys Senior Analyst Manish Pravinkumar.

Transsion continued to dominate the market with a 51 per cent share, though its growth slowed to just 1 per cent. 

Samsung, despite holding a 19 per cent market share, saw its shipments decline by 25 per cent, as the company shifted focus away from its entry-level models. 

In contrast, Xiaomi bucked the trend with a 45 per cent surge, reaching a record-high 12 per cent regional market share. 

The Chinese tech giant’s focus on Nigeria and Egypt, combined with aggressive sales strategies and on-the-ground investments, contributed to this success. 

Meanwhile, realme, although a smaller player with a 5 per cent market share, saw explosive growth of 137 per cent. 

Finally, OPPO also enjoyed a resurgence, with 39 per cent growth driven by strong performance in North Africa, thanks to the expansion of its Reno series and commitment to innovation, which resonated well with consumers.