Xiaomi and OPPO have emerged as power players in the African smartphone market, making striking comebacks with 100% and 259% yearly growth, respectively, according to a recent study by global research firm Canalys.
Despite the economic challenges faced across the continent, the African smartphone market witnessed a noteworthy 12% year-on-year increase in smartphone shipments during the third quarter of 2023.
This growth defied expectations, especially when compared to the global smartphone market, which experienced a 1% decline during the same period.
TRANSSION, the mobile group encompassing popular brands like Tecno, Infinix, and iTel, retained its market leadership, securing a robust 48% market share with a consistent 9% yearly growth.
The company strategically focuses on emerging markets, particularly emphasizing price bands below US$100.
Samsung, a longstanding player in the market, managed to maintain its position despite a 13% drop in sales of its mid-to-high-end handsets.
Holding onto a 26% market share, Samsung demonstrated resilience in a competitive landscape.
Xiaomi and OPPO’s resurgence was fueled by significant investments, particularly in the Egyptian market. Both companies posted remarkable growth rates, with Xiaomi achieving a 100% increase and OPPO an astounding 259% yearly growth.
Their positive performance in Q3 was further boosted by the successful introduction of new models and effective branding strategies.
Canalys Senior Consultant Manish Pravinkumar noted that the African market exhibited exceptional resilience in both supply and demand despite macroeconomic difficulties.
South Africa, in particular, showcased a remarkable 20% growth in its smartphone market, driven by a surge in demand for entry-level devices, especially catering to the extensive pre-paid segment.
Pravinkumar emphasized that the demand for mid-range devices also witnessed an upswing, influenced by frequent power outages, known as load-shedding.
Consumers prioritized smartphones with high-quality screens and long battery lives to stay connected during power disruptions.
While Canalys anticipates single-digit growth in the African smartphone market in 2024, the study highlighted ongoing challenges, including depreciating currencies, higher import tariffs, and government initiatives favoring domestic manufacturing.
However, the provision of financing schemes for devices by operators and channel partners could play a crucial role in improving accessibility and driving adoption rates.
As the smartphone landscape evolves, with 2G reaching a plateau and 4G and 5G on the rise, the African market remains a dynamic space where strategic moves by companies like Xiaomi and OPPO can reshape the competitive landscape.