Business
CHN | Dec 6, 2021

Chinese smartphone brands top Africa’s market in Q3

/ Our Today

administrator
Reading Time: 3 minutes


Transsion Holdings, a China-based smartphone manufacturer, led the African smartphone market in the third quarter with a unit share of 47.4 per cent, maintaining stable shipments into the region, according to the latest study by a global research firm released in Nairobi, Kenya, today (December 6).

The International Data Corporation (IDC) said Transsion, which manufactures Tecno, Infinix, and Itel brands, outpaced Samsung which is placed second with a 21.3 per cent share, while Xiaomi, which experienced a quarter on quarter (QoQ) decline in shipments placed third with a 6.1 per cent share.

“The 5G market is still below its full potential in Africa due to poor telecommunications infrastructure,” George Mbuthia, a research analyst at IDC said in a statement issued in Nairobi.

George Mbuthia, research analyst.

Mbuthia said the 4G will remain dominant as telecom firms are keen on recouping the huge investments they made in the 4G infrastructure that is yet to be fully utilised.

“The relatively high cost of 5G devices is another inhibitor. In the longer term, however, prices will start declining as more vendors launch affordable 5G models,” he said.

The study shows that Africa’s smartphone market saw shipments decline 2.3 per cent QoQ during Q3. While the region displayed signs of recovery in H1 2021, IDC said component shortages began to negatively impact African markets in Q3, causing a decline in smartphone shipments.

In contrast, says the reports, Africa’s feature phone market remains buoyant, growing 14.2 per cent QoQ.

“With smartphone prices remaining relatively high and only expected to increase over the coming following quarters, the affordable prices of feature phones make these devices extremely attractive,” IDC said.

According to IDC, Africa’s top three smartphone markets recorded mixed performances as Egypt saw shipments decline 19.5 per cent QoQ, while Nigeria was down 9.4 per cent over the same period. The report says both of these markets are dominated by Chinese brands that had lower shipments due to component shortages.

SMARTPHONE SHIPMENTS IN AFRICA EXPECTED TO GROW

South Africa, on the other hand, saw shipments increase by 28.4 per cent QoQ growth, with Nokia performing well with its competitive C-series models and Samsung having a strong quarter in preparation for the festive season.

The average selling price (ASP) for smartphones declined 0.7 per cent QoQ due to new models being launched in the entry-level price bands.

The below US$100 price saw shipments increase 5.9 per cent QoQ, while shipments of devices in the US$100- US$200 and US$200-US$400 price bands declined 14.1 per cent and 0.7 per cent respectively, the IDC said.

It says 4G devices accounted for 81.0 per cent of smartphones shipped into the region in Q3 2021, followed by 3G devices with 15.9 per cent share and 5G devices with just 3.1 per cent share.

IDC expects smartphone shipments into Africa to grow 7.6 per cent QoQ in Q4. A more stable recovery in the supply chain is expected starting from the second half of 2022 when component shortages will start to ease.

Comments

What To Read Next