Nigeria: Smartphone Market Grew 2% Units, Declined 6.4% in Shipment

 

 

 

 

Nigeria’s smartphone market grew 2.0% in unit terms quarter on quarter (QoQ) in Q2 2021, according to the latest figures from global technology and consulting services firm International Data Corporation (IDC).

However, the firm’s Quarterly Global Mobile Phone Tracker also shows that feature phone shipments into the country declined 6.4% over the same period. Feature phones accounted for 51.8% of the market’s overall shipments in Q2 2021, with smartphones responsible for the remaining 48.2% share.
The smartphone market’s growth in Q2 2021 was spurred by vendors launching various new models, increasing their investments in marketing activities, and shifting their product portfolios towards entry-level and mid-range devices.

Transsion’s Tecno, Itel, and Infinix brands dominated the country’s smartphone market in Q2 2021 with 76.9% unit share. Samsung placed second with 10.0% share, while Nokia and Xiaomi followed with respective shares of 3.7% and 2.9%.
With many consumers continuing to prefer physical stalls, smartphones sales through offline retail channels grew 1.7% QoQ in Q1 2021. However, smartphone sales through online channels grew 7.8% over the same period as e-tailers in the country improved their delivery capabilities, facilitated secure payments, and capitalized on improved consumer confidence.
Feature phones continue to be the preferred secondary device in the Nigerian market, mainly due to slow infrastructure development and the country experiencing constant power outages.

The major players in the feature phone space in Q2 2021 were Tecno with 45.8% unit share, Itel (35.1%), and Nokia (12.7%). Feature phone shipments declined as the devices now face stiff competition from ultra-low-end smartphones in the <$100 price segment, whose affordability makes them more attractive to consumers.

The transition from feature phones to smartphones is also accelerating as a result of more consumers demanding access to the Internet.

Figure 1: Nigeria Smartphone Market by Price Band Share (Units)

 

 

“With reduced consumer purchasing power due to the repercussions of the COVID-19 pandemic, the entry-level <$200 segment of the smartphone market continued to lead the way in Q2 2021 with 86.7%unit share,” says George Mbuthia, a research analyst with IDC. “The affordability of these models, together with improvements in core features such as larger storage, better battery life, and bigger screen sizes, led to an increase in sales during the quarter. Transsion and Samsung were particularly successful in capturing greater market share by launching new models into this rewarding market segment.”
IDC expects Nigeria’s overall mobile phone market to decline 7.0% QoQ in Q3 2021, with feature phone shipments declining 6.0% and smartphone shipments declining 8.0%. This is due to the existence of large inventories following high levels of shipments during the first half of the year and the fact that borders remain closed, thereby hindering cross-border trade.

“The global chip shortage will also affect the market, although there is still uncertainty over the scale of its impact,” says Dr. Ramazan Yavuz, a senior research manager at IDC. “Despite the anticipated negative impact of the chip shortage, the Nigerian market will rebound somewhat in Q4 2021, with demand spurred by Black Friday and the festive period in November and December.”

 

 

 

spot_img
spot_img
spot_img
spot_img

Hot this week

NAICOM, NCRIB, NCC, NLNG, Guinea, Stanbic IBTC Holding, Leadway, Universal, Others Drum Support for SUPERNEWS Confab July 7

Bluechip firms, government agencies and reputable organisations from various...

NCC Chief, Aminu Maida, is Special Guest of Honour at Business Journal Fintech & Financial Inclusion Roundtable 2026

Dr. Aminu Maida, Executive Vice-Chairman/CEO, Nigerian Communications Commission (NCC)...

WorldStage to Present Nigeria’s Economic Report Q1 2026 at Business Forum

World Stage Limited (WorldStage), a Nigerian-based research and technology-driven global focused firm...

Topics

Consolidated Hallmark Insurance Raises Capital to N10bn, Shops for N5.5bn

Consolidated Hallmark Insurance Plc has increased its authorised share...

HEREL: Redefining Living Experiences in Nigeria via Development

On Sunday, 29th May 2022, Real Estate and Hospitality...

Olashore’s Lead Advisory Emerges Nigeria’s 1st Strategic Partner to WCF Forum

WCF, the world's biggest communication Forum in Davos, Switzerland,...

NCC Lists Reasons for Stringent SIM Card Processes

The Nigerian Communications Commission (NCC) has again explained to...

AIG to Sack 125 Staff in UK

American International Group Inc., the insurer under pressure from...

#NoNoiseJustSigns: Access Bank Unveils N200m DiamondXtra Season 17 Program to Reward Customers

L–R: Echezona Ezeuko, Regional Sales Manager, Festac Region, Access Bank...

SPECIAL INVITATION to Business Journal Public Presentation Tomorrow!

The Board, Management & Staff of Business Journal (online-magazine-newspaper)...

Nigeria LNG at 9th Realnews Anniversary Lecture

Mrs. Eyono Fatayi-Williams, General Manager, External Relations and Sustainable...
spot_img

Related Articles

Popular Categories

spot_imgspot_img