A Look at Africa's Smartphone Market in Q4 2023

Thanks to Chinese-owned phone brand Transsion, with its budget-friendly options, Africa's smartphone market is experiencing tremendous growth, amidst a tough economic situation.

Transsion, the parent company of Tecno, Itel, and Infinix, cemented its dominance in the African market during 2023. Its strategy of ultra-low-end devices priced under $100 was well received by budget-conscious consumers grappling with reduced income and fluctuating exchange rates. Meanwhile, Samsung and Xiaomi secured the second and third positions, respectively.

According to IDC's latest data, smartphone shipments rose 12.5% year-on-year in Q4 2023 to reach 19.8 million units, while feature phones saw a decline of 7.8% in the same period.

The top three markets:

• Kenya recorded the region's highest YoY growth rate in terms of smartphone shipments in Q4 2023 coming from a low base in Q4 2022.
• Nigeria, despite currency fluctuations and market volatility, boasted the second-highest growth rate due to the strong presence of Chinese brands.
• South Africa, another big market faced a decline due to economic challenges and port delays.

An important trend to note is the continuing demand for affordable smartphones amid economic imbalances. This saw shipments in the ultra-low-end category (below $100) grow by 5.2% YoY in Q4 2023, while low-end ($100<$200) and midrange ($200<$400) devices also marked double-digit growth of 18.9% and 16.6%, respectively.

Looking ahead, growth is expected to moderate in 2024 at only 2.8%. The shift from feature phones to smartphones will continue to be a major driver, coupled with the increasing adoption of AI-powered phones and 5G technology.