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
spot_img

Hot this week

11 Poets Chase $100,000 Prize as The Nigeria Prize for Literature Unveils 2026 Poetry Longlist

Eleven outstanding poetry collections have emerged on the longlist...

CBN Gov, Yemi Cardoso, to Speak at Business Journal Fintech & Financial Inclusion Roundtable 2026

Mr. Olayemi Cardoso, Governor, Central Bank of Nigeria (CBN)...

Leadway Assurance Champions Insurance Adoption in Nigeria’s Creative Sector

Leadway Assurance, Nigeria’s leading insurance services provider and a...

Dangote Refinery Completes Landmark $2.5bn Private Equity Placement

Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully...

NGX Chair: Africa Has a Unique Opportunity to Participate, Shape Global Financial System

The talking points by Dr. Umaru Kwairanga, Group Chairman,...

Topics

Linkage Assurance Assures Clients of Value, Efficient Service in 2019

L-R: Mr. Humphrey Ozegbe, Head, Human Resources; Mr. Tony...

PenOp Elects Christopher Bajowa as New President

Following the retirement of the previous PenOp President and...

FCCPC and Digital Theft: Time to Act

By Segun Adediran For those who studied Economics at the...

Unity, Providus Banks Merger a Done Deal as Integration Progresses

Following the recently held Court-Ordered Meeting and subsequent overwhelming...

Siemens, Anglo American Partner on Digital Skills Development in Africa

Currently, one of the most debated topics influencing innovation...

African Insurers Must Innovate to Attract Digital Consumers

Insurers who are able to innovate when it comes to the design and delivery of products and services will not only be fostering greater loyalty amongst their consumers, but they will also be helping to change the perception that the insurance industry is still playing catch up.

‘Recapitalisation will Strengthen Banks in Nigeria’

  The International Monetary Fund (IMF) says recapitalisation will strengthen...

Almond Set for Insurance Forum, Industry Nite

Almond Productions Limited, promoters of the Annual Insurance Consumers’...
spot_img

Related Articles

Popular Categories

spot_imgspot_img