Canalys: Africa’s smartphone market grew 9% in 2024
Data from Canalys, a global technology market analyst firm, shows Africa’s smartphone grew by 9 per cent year-on-year signaling resilience amid global economy volatility. The report links the recovery to easing inflation which boosted purchasing power, and vendors’ expansion into emerging markets. Looking ahead, Manish Pravinkumar, Senior Analyst at Canalys forecasts a 2 per cent growth this year as the continent navigates economic complexities.
Thu, 27 Feb 2025 14:17:13 GMT
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AI Generated Summary
- Africa's smartphone market grew by 9% year-on-year in 2024, driven by factors like easing inflation, vendor expansion, and replacement cycles following the COVID-19 peak.
- Economic challenges in 2025, such as high inflation and currency depreciation, are expected to lead to a more modest 2% growth, impacting key markets like Nigeria and Egypt.
- Intense competition among major players like Tencent, Xiaomi, Samsung, and Oppo, coupled with consumer preferences for price-sensitive devices, are influencing market dynamics and pricing strategies.
Africa's smartphone market has demonstrated remarkable resilience in the face of global economic volatility, with data from Canalys, a global technology market analyst firm, revealing a 9% year-on-year growth in 2024. This growth trajectory highlights positive developments driven by factors such as easing inflation, expanding vendor presence in emerging markets, and replacement cycles following the peak shipments during the COVID-19 pandemic in 2021. According to Manish Pravinkumar, Senior Analyst at Canalys, the continent is projected to experience a more modest 2% growth in 2025 as it grapples with various economic challenges. While the outlook for the African smartphone market remains mixed, there are key dynamics at play shaping the future appetite for mobile devices. Tariff hikes in countries like Nigeria and increased taxes in Egypt are influencing consumer purchasing behaviors and market dynamics. Policy shifts and price pressures in key markets like Nigeria, Egypt, Kenya, and South Africa are impacting the landscape of the smartphone industry in Africa. Furthermore, intense competition among major players like Tencent, Xiaomi, Realme, Samsung, and Oppo is driving strategic shifts in market share dynamics. Xiaomi's aggressive expansion in West Africa, Samsung's focus on premium segments, and Oppo's investment in local production in Egypt are indicative of the evolving competitive landscape. The sub-$100 price band continues to be a significant growth driver, catering to consumers transitioning from feature phones to smartphones while also considering the importance of cost-effective data plans. Device financing, localized products, and local manufacturing partnerships are key strategies recommended for players to remain competitive and capture market share in the mass consumer segment. As the African smartphone market navigates economic complexities, innovative strategies and a deep understanding of consumer preferences will be vital for sustained growth and success in the region.
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