According to the latest research, the African smartphone market experienced its first year-on-year decline in three years during the second quarter, with shipments falling 7%. As device prices continue to climb, consumer purchasing power across the region is facing mounting pressure, particularly in the sub-$100 entry-level segment.
This price bracket has long served as a critical gateway to digital connectivity for Africa's emerging middle class, yet shipments in this category plummeted 34% year-on-year, representing a reduction of nearly 3 million units. Rising memory costs and AI-driven supply chain adjustments have further intensified both supply constraints and price pressures on entry-level smartphones.
A chief analyst noted: "We are witnessing the African smartphone market being forced to shift toward higher price segments. Manufacturers can no longer profitably produce smartphones at the $75 price point, and consumers with connectivity needs are increasingly having to raise their budgets and move toward devices priced above $200."
South Africa grew 17%, while Egypt and Kenya saw declines due to cost and policy factors. Market performance varied significantly across countries, reflecting differences in local market structures and policy environments. South Africa stood out as the strongest performer with 17% year-on-year growth, driven by enhanced consumer purchasing power and continued transition toward 5G devices. As more consumers purchase devices above the entry-level tier, South Africa has grown in strategic importance for manufacturers like Honor and Samsung.
Nigeria saw an 11% year-on-year decline, as price increases led consumers to delay purchases and retailers experienced weaker sales performance. Egypt's market contracted 26%, with local production input costs rising 50% since January according to data from the Federation of Egyptian Chambers of Commerce's mobile communications division, prompting manufacturers to significantly raise product prices in mid-quarter. These price hikes disrupted traditional sales channels and led some consumers to postpone device upgrades. Kenya's market fell 15%, primarily impacted by rising device prices, especially in the sub-$150 segment where market demand remains concentrated.
Samsung achieved growth while Transsion adjusted its strategy, with a 26% price increase reshaping Africa's smartphone landscape. The average selling price rose $41 year-on-year to $202, replacing the aggressive price-cutting trend seen in the second quarter of 2025. This reflects both the market shift toward higher-priced products and price increases across all segments, which is reshaping the competitive rankings of smartphone manufacturers in Africa.
Market leader Transsion, encompassing TECNO, Infinix, and iTel brands, saw shipments decline 14% with market share erosion. Given its strong presence in the sub-$100 market, the company was more significantly impacted by the sharp contraction in entry-level demand. Samsung performed strongly with 15% shipment growth as demand shifted toward higher price segments. This was supported by strategic inventory management that allowed the company to maintain months-long stock buffers for key volume models such as the Galaxy A07 and A17. Honor sustained its growth momentum for a second consecutive quarter, driven by its strategic focus on the more resilient mid-to-high-end segment above $300. This reduced its exposure to component supply constraints affecting the entry-level market. Honor continues to prioritize markets like South Africa, which accounts for approximately 60% of its shipments across Africa.
Africa's smartphone market has entered an adjustment phase, with manufacturers reassessing affordability strategies. The market is expected to decline 26% in 2026, ending three consecutive years of growth. Device financing will become an increasingly important component of manufacturer affordability strategies, particularly as device prices rise and consumers find it harder to absorb one-time purchase costs. As one of Africa's leading device financing providers, Transsion plans to further strengthen this capability while advancing its overall portfolio strategy. Xiaomi is also actively exploring financing partnerships to expand consumer access to higher-value devices and drive business expansion beyond the entry-level segment. With cost and exchange rate pressures persisting, the next phase of market competition will hinge on manufacturers' ability to effectively balance product affordability, shipment volumes, and profitability.
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