Canalys: the shipment volume of the African smartphone market in the fourth quarter of 2023 reached 19.2 million units, an increase of 24% year-on-year.

Canalys stated that in the fourth quarter of 2023, the African smartphone market experienced a significant recovery, with shipments reaching 19.2 million units, a year-on-year increase of 24%. This surge in the quarter was due to the growing demand for digital services, the vibrant development of social media, and the popularity of "buy now, pay later" schemes. Despite facing various economic challenges (such as energy crisis in South Africa, reforms in the oil industry in Nigeria, and forex shortages in Egypt), the top three markets in the region still achieved strong growth. More affordable smartphones were introduced, with South Africa, Nigeria, and Egypt growing by 15%, 63%, and 63% respectively. Due to increased consumer confidence in the second half of 2023, smartphone shipments in the region reached 68.7 million units for the full year, a 6% increase from 2022. Canalys Senior Analyst Manish Pravinkumar stated: "The shift from feature phones to high-value smartphones in the African market reflects consumers' strong demand for modernization and improved internet connectivity, leading to increased activities by entry-level market vendors. In the fourth quarter of 2023, shipments of ultra-low-end (below $100) smartphones grew by 43% year-on-year. This growth was mainly driven by Transsion, which launched new low-end models in the second half of 2023. Despite some markets experiencing declines, Samsung remains crucial in South Africa, with its A series models A14 and A04 being key drivers contributing to 30% of Samsung's shipments in Africa. Xiaomi is actively expanding its product range, including the newly launched Redmi 13 series, to cater to consumers seeking better aesthetics. Xiaomi's success is attributed to its marketing strategies, including heavy investments in social media marketing, collaboration with Key Opinion Leaders, and online promotions, making it a brand preferred by young tech enthusiasts." Pravinkumar added: "Due to the increase in digitization and social media usage, consumers in the African region are seeking higher specifications in entry-level devices, particularly in terms of operating memory and storage space. New brands are leveraging diverse products and partnerships to establish themselves in specific markets, while established manufacturers are chasing untapped opportunities in emerging markets. OPPO experienced a strong growth of 156%, mainly driven by expansion in Arabic-speaking countries such as Egypt and Morocco. Although Huawei did not enter the top five, it achieved an impressive growth of 371%, especially driven by the South African market, highlighting Huawei's success in offering smartphones at various price points supported by HMS, effectively catering to the preferences of different consumers. While some markets in sub-Saharan Africa may have reached Transsion's maturity level, they are actively seizing growth opportunities, especially in the three major North African markets - Morocco, Egypt, and Algeria - with average growth rates in the fourth quarter reaching around 94%." Pravinkumar continued, "As the technological landscape evolves, the demand for smartphones in the African region will continue to surge. With disposable incomes restricted in multiple countries, manufacturers, governments, and telecom operators will actively address the affordability of smartphones and the high cost of internet through innovative solutions. In sub-Saharan African markets, governments and operators are working to provide affordable 4G smartphones, such as Rwanda Telecom Company (Airtel Rwanda), to improve internet access. Countries like Kenya and Zambia are even establishing smartphone manufacturing plants to lower product prices. However, the region will continue to face macro challenges due to changes in government taxation and import policies. Channel partners are also concerned about potential import cost increases and currency fluctuations that may affect profit margins in the coming year. Canalys adopts a cautious optimistic outlook for the African smartphone market in 2024, expecting single-digit growth as initiatives in product marketing and various financing schemes continue to increase."