Africa’s smartphone market shrunk by 18% last year

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According to a report by International Data Corporation (IDC), the African smartphone market will decline by 18% in 2022 compared to the same period last year. The slowdown was driven by lower consumer spending and economic uncertainty from inflation, but was not limited to Africa as smartphone sales fell in key markets over the past year. According to IDC, the global smartphone market fell by 11.3 percent.

A total of 73.4 million devices were shipped to Africa, with South Korea's Samsung and Chinese brands Tecno and Itel accounting for 65 percent of total shipments.

Devices priced under $200 accounted for 82 percent of all smartphone shipments, which explains why low-end Chinese products dominated the shipment.

Egypt and Tunisia both recorded 63%, and Tunisia recorded the largest year-on-year decline.

This decline in Egypt is due to a severe shortage of smartphones and the increase in gadget prices due to new taxes and import restrictions. Egypt's requirement to make all import payments via Letters of Credit (LC) has seriously disrupted the market as the country has allowed only a minority, instead prioritizing essential goods. The devaluation of the national currency and the difficult economic environment are also expected to have a negative impact on the market. Tunisia is hit by increased tariffs and taxes on smartphones.

Kenya and South Africa suffered the least damage, with annual declines of 4% and 5% respectively.

As a platform for asset financing and the East African sub-region's utility markets, Kenya has seen relatively modest declines, while in South Africa Chinese brands have thrust into the country's spotlight and local brands have been pushed back and benefited from the subsidies paid. From the government,” said Dr. Ramadan. Yavuz, senior director of research at IDC Middle East and Africa, told TechCrunch:

However, Yavuz expects an improvement across the continent this year.

After 2022 was a weak year for the African smartphone market, it should return to growth in the medium term. The market is being driven by an influx of cheaper models offsetting falling disposable income in the United States. "

Second, the transition from cell phones to smartphones is far from complete, and the number of tech-savvy young people is growing rapidly. These two are the main factors in our optimistic outlook for the smartphone market.

On this continent, 93.4 million smartphones will be launched in 2022, down 18% compared to the same period last year.