Africa’s Smartphone market dips 3.4% in Q1 2023

By Cynthia Ezekwe 

Africa’s smartphone market fell by 3.4 per cent quarter-on-quarter in Q1 2023 to total 17 million units, marking the lowest level of shipments since the start of the COVID-19 pandemic in Q1 2020.

This is according to the latest figures announced by International Data Corporation (IDC), alongside its newly-released global quarterly mobile phone tracker, which showed that  rising inflation and local currency depreciations against the U.S. dollar have negatively impacted demand for smartphones across the continent.

According to IDC, shipments of feature phones across Africa also declined in Q1 2023, although not to the same extent as smartphones, but it  remains relatively affordable and is still the preferred secondary device option for many consumers.

Commenting on the decline, George Mbuthia, a senior research analyst at IDC, noted that Africa’s smartphone declined throughout 2022 amid weak consumer demand, adding that it has been exacerbated by rising inflation and higher device prices.

“The average selling price (ASP) for smartphones grew QoQ due to high import costs and the fact that many vendors’ flagship devices are now equipped with 5G and have therefore moved up in price to the premium segment,” he added.

Also, Africa’s top three smartphone markets recorded a mixed performance in Q1 2023. South Africa and Nigeria both saw shipments decline QoQ, while the Egyptian market registered growth.

IDC pointed out that South Africa was impacted by seasonality issues and weak demand, as  vendors were unable to bring in new units, while they continued to clear the channel.

The International Data Corporation further noted that tecno, Itel, and Infinix accounted for the largest share for smartphone shipments across Africa in Q1 2023, despite experiencing a decline in units. Samsung placed second while Xiaomi placed third.

Ramazan Yavuz, a senior research manager at IDC, said, “Looking ahead, a slight recovery in demand is expected starting from the second half of 2023, with uncertainty over a global recession lessening.’’

Yavuz stressed that greater currency stability against the dollar will promote more stable pricing, ease import costs and spur slight growth throughout the remaining days of the year.