INTELLIGENT BRANDS // Mobile Technology

increased 13.7 % quarter-on-quarter

( QoQ ) in Q3 2020 to almost three million units , according to the latest figures from global technology and consulting services firm International Data Corporation ( IDC ). Referencing the Quarterly Global Mobile Phone Tracker , IDC said Nigeria ' s smartphone market remained healthy in the third quarter as vendors shifted their model portfolios to entry-level and mid-range devices . Transsion ' s Tecno , Itel and Infinix brands dominated smartphone shipments in Q3 2020 with a combined 76.4 % share . Samsung placed second with 7.0 % share and Xiaomi placed third with 5.3 %. Chinese brands continue to invest in the country as they attempt to penetrate the market and gain a foothold .

Accorinding to IDC , the average street prices of smartphones declined marginally ( 0.3 %) as the dollar exchange rate remained high . The increase in VAT by 2.5 percentage points also had a negative impact on prices . With the relaxation of COVID-19 measures , the majority of consumers returned to the physical retail channel in Q3 2020 , leading to a 21.5 % QoQ increase in retail sales .

In addition , IDC noted that feature phone shipments rebounded strongly in Q3 2020 , with shipments increasing 21.2 % QoQ to account for 56.0 % of the country ' s overall mobile phone market . Feature phones remained resilient as they continue to be the preferred secondary phone in an environment of declining consumer purchasing power and rising unemployment . The major players in the feature phones space in Q3 2020 were Tecno with 49.7 % share , Itel with 34.8 %, and Nokia with 8.2 %.

" In light of the economic hardships caused by the COVID-19 pandemic , vendors continued to ship more affordable devices priced below US $ 200 as they sought to address demand for cheaper models and penetrate consumer segments with lower purchasing power ," said George Mbuthia , Research Analyst at IDC . " This strategy of offering more devices in the entry-level and mid-range price bands (< US $ 200 ) ensured a faster market recovery from the weak performance seen in Q2 2020 , which was heavily impacted by COVID-19 ."

IDC expects Nigeria ' s overall mobile phone market to grow 3.1 % QoQ in Q4 2020 , with feature phone shipments increasing 1.9 % and smartphone shipments growing 4.7 %. " Promotions from the end of November through the festive month of December will support the market ' s growth in Q4 2020 ," says Ramazan Yavuz , a senior research manager at IDC . " COVID-19 will continue to pose a threat to the overall economy and , in particular , to mobile phone markets .

“ However , smartphone shipments will remain resilient in 2021 , with customers moving from feature phones to smartphones and data usage increasing in the medium term ." p

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