Nigeria’s smartphone market grew despite currency devaluation – IDC - PUNCH
Nigeria’s smartphone market grew in the third quarter of 2023 despite rapid currency devaluation, the International Data Corporation has disclosed.
This correlates with the resilience shown by the African smartphone market, which grew by 12.8 per cent year-on-year in Q3 2023 to reach 20.1 million units, the latest Worldwide Quarterly Mobile Phone Tracker from IDC revealed.
A senior research analyst at IDC, Arnold Ponela, expanded, “Egypt witnessed the continent’s most substantial year-on-year growth in smartphone shipments in Q3 2023, albeit from a low base as the market was negatively impacted in Q3 2022 by the introduction of new import regulations and restrictions, which have since been eased.
“South Africa’s smartphone market also saw healthy growth, driven by the recovery of local brands and the increased presence of Chinese brands. Despite the country experiencing rapid currency devaluation, Nigeria’s smartphone market registered growth in Q3 2023, with Infinix and Xiaomi boosting their shipments of entry-level devices.”
While smartphones recorded growth, feature phone shipments decreased 5.1 per cent over the same period to total 23.1 million units underscoring a continued technology migration. Shipments of smartphones priced under $100 increased year on year in Q3 2023, while shipments of $100–$200 devices decreased, indicating a growing consumer preference for budget-friendly options in the face of high inflation and a cost of living crisis.
Looking ahead, IDC expects Africa’s smartphone market to expand 2.6 per cent y-o-y in 2024, with a sustained upward trajectory through 2027.
A research manager at IDC, Ramazan Yavuz, added, “Africa remains a market with high feature phone share, and the transition to smartphones will be a key driver of the market’s growth in the mid to long term. Persistent inflationary pressures and escalating macroeconomic uncertainties will result in short-term ups and downs in the market but will not impede the long-term shift from feature phones to smartphones.”
The PUNCH recently reported that the demand for Chinese smartphones grew in the third quarter of 2023 in Nigeria, driving smartphone shipments in the Middle East and African region by 23 percent y-o-y in Q3, 2023.