INTELLIGENT BRANDS // Mobile Technology
Africa’s smartphone
market declines
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A
frica’s smartphone market
experienced a quarter-on-quarter
(QoQ) decline of 6.4% during
Q4 2017, according to the latest insights
announced by International Data
Corporation (IDC). The global technology
research and consulting firm’s Quarterly
Mobile Phone Tracker shows smartphone
shipments were down to 20.3 million units
for the quarter. Year on year (YoY), this
represents an 18% decline, meaning the YoY
improvement seen in the previous quarter
did not extend to the year’s final – and
traditionally strongest – quarter. to recover from recession and consumer
spending is on the rise, there are also clear
signs of improvement in South Africa.
The end to the political crisis means that
challenging economic conditions will
be addressed as a priority by the new
government, which will have a positive effect
on consumer confidence and spending on
mobile phones.”
In the feature phone space, shipments
totaled 33.4 million units, up 3.1% QoQ
after decreasing in the previous quarter.
Year on year, the feature phone market
was up 9.9%. Feature phones continue to
account for a majority share (62.2%) of the
region’s overall mobile phone market as they
adequately address the needs of consumers
that have limited purchasing power and
require a reliable long-lasting mode of
communication, particularly in rural areas. “The Transsion Group maintains its top
position by designing attractively priced
devices that address the specific needs of
each local market – a strategy the group
proudly refers to as its ‘glocal’ approach,”
added Nabila Popal, Senior Research
Manager at IDC.
Combining smartphones and feature phones
together, the overall Africa mobile phone
market saw shipments of 53.7 million units
in Q4 2017, which represents downturns of
0.7% QoQ and 2.6% YoY. The continent’s
two biggest markets saw extremely strong
growth, with shipments up 19.9% QoQ in
Nigeria and 27% QoQ in South Africa. North
Africa also experienced a slight increase,
although there were declines across most
other markets.
In terms of the vendor landscape, Transsion
brands continued to lead the smartphone
category in Q4 2017 with 30.4% share,
followed closely by Samsung on 27%.
“Despite the significant presence of Transsion
brands in most African markets, it is important
to note the increasing prevalence of local
brands that are gaining considerable share in
their home markets and slowly expanding to
surrounding countries.”
In the feature phone space, Tecno and
itel – both of which are Transsion brands –
continued to dominate in Q4 2017 with a
combined share of 57.2%.
IDC’s research shows that 4G phones are
growing in popularity, accounting for a
majority share of the smartphone market
at 56.8%. Shipments of 4G devices were up
3.9% QoQ in Q4 2017, with a drop in prices
for entry-level 4G phones and an increase
in the number of 4G networks across the
continent driving this growth.
“Despite the push of operators towards 4G,
the price differential between 3G and 4G
devices together with the price sensitivity of
African consumers means that many people
in Africa still prefer 3G phones,” said Popal.
Looking ahead, IDC expects Africa’s overall
mobile phone market to grow by 0.7%
QoQ in Q1 2018, with overall shipments
to increase slightly, leading to YoY growth
of 2% for the year. Demand for feature
phones is expected to remain strong,
although IDC expects vendors to drive
smartphone uptake by offering more
features in affordable price bands. n
Africa’s smartphone
market experienced
a quarter-on-quarter
decline of 6.4%
“Major campaigns took place around
Black Friday and during the lead up to
Christmas, which positively impacted
consumer spending in Nigeria and South
Africa,” said Ramazan Yavuz, Research
Manager at IDC. “While Nigeria continues
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