Sunday, June 7, 2026
24 C
Lagos

Africa to Record 238m Smartphones by 2020

Annual smartphone sales in Africa and the Middle East are forecast to grow by a CAGR of 15% to reach 238 million units by 2020.

According to Pyramid Research, this will surpass the 204 million unit sales in North America and 201 million unit sales in Latin America.

Following significant network investments by African operators to capitalize on the rising demand for data services, operators are increasingly becoming concerned with increasing the number of smartphone users on their networks.

Device financing – a direct approach to boosting smartphone usage.
Operators providing device financing schemes is one of the four direct strategies detailed in the report. In a region characterised by low income levels, smartphone prices can be prohibitively expensive.

To overcome this, African operators have partnered with banks to address this barrier to purchasing smartphones, such as Tigo Ghana’s partnership with Stanbic Bank to provide financing schemes for the Samsung Galaxy range of devices.

“However, a key limitation is the large unbanked population in Africa. To overcome this, operators need to consider financing schemes using mobile money,” says Mak Rahnama, Senior Analyst at Pyramid Research.

It is not just about just selling more devices.
Indirect strategies, which focus on increasing mobile data usage to drive smartphone adoption, are also found to be essential given the majority of consumers in African markets purchase their devices from various retail channels (e.g. informal sector, independent retailers) rather than directly from operators.

Rahnama states that “by providing OTT localised content, operators can incentivise consumers to purchase smartphones, and in-turn increase smartphone penetration on their networks.”

The report provides an in-depth analysis of three indirect strategies that operators can deploy to boost smartphone usage on their networks.

Huawei Probed by US for Sanctions Busting
China’s Huawei has been served with a subpoena by the US Commerce Department investigating allegations that it may have broken US sanctions on Cuba, Iran, North Korea, Sudan and Syria.

The subpoena calls for Huawei to turn over information related to shipments to those countries over the past five years.

Huawei has not yet been accused of wrongdoing. In a statement, it said that it was committed to complying with laws and regulations where it operated.

“In particular, Huawei has a strict code of conduct, rigorous training, and detailed policies relating to export control compliance and actively cooperates with the relevant government agencies, including the Department of Commerce, regarding Huawei’s compliance with export control laws,” a company spokesperson said in an email.

The investigation appears to be similar to one which ensnared ZTE, which sold equipment to the embargoed countries based on components supplied by US suppliers.

The investigation into ZTE highlighted an unnamed rival company which ZTE executives were said to be copying in their efforts to sell to the embargoed countries.

The semi-official China Daily newspaper cited an official as claiming this was a sign of US protectionism against Chinese rival companies.

spot_img
spot_img
spot_img
spot_img

Hot this week

Govt Comprehensive Secondary School, Borikiri, Crowned Champion of 2026 NLNG Science Contest

Sophia Horsfall, General Manager, External Relations and Sustainable Development,...

Former Power Minister, Barth Nnaji, to Grace SUPERNEWS Confab as Special Guest of Honour

The Chairman, Geometric Power Limited and former Nigerian Minister...

IFC, NGX Group, LCCI Unveil Nigeria Gender Country Program at CEO Roundtable

The International Finance Corporation (IFC), Nigerian Exchange Group (NGX...

NAICOM Chief Leads Delegation to Abia State, Pledges Partnership on Policyholders Protection, Economic Growth

The Commissioner for Insurance, National Insurance Commission (NAICOM), Mr....

Topics

Strategic International Communication of President Buhari’s Agenda

“Fellow Africans have become even more important publics of Nigeria's international public relations.” There is an on-going makeover of the international reputation of Nigeria since President Muhammadu Buhari came into office on May 29th. He has brought credibility to the governance of the country. The immediate implication is that the international community is now better disposed to working with Nigeria, especially with regard to enhancing security.

INEC: One Party Fails to Nominate a Single Polling Agent for Anambra Election

REMARKS BY THE HONOURABLE CHAIRMAN, INDEPENDENT NATIONAL ELECTORAL COMMISSION...

Unity Bank Customers Win Over N.5m in Verve Card Promo

Unity Bank customers, Nmeregini Chukwuebuka and Sharif Yusuf Mohd...

The $450m Lekki-Epe International Airport: Everything You Need to Know!

By Dennis Isong Economic development is a vital component of...

Standard Chartered Bank Commits $75bn Towards SDGs

Standard Chartered Bank has announced new business targets for...

SEC DG, House Committee on Capital Market Chair Visits NSE

L – R shows Chairman, Committee on Capital Market...

Telecom M&A, Digital Convergence Lead Deal Activity in Africa

TMT Finance is teaming up with IHS Towers, the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img