African Smartphone Market Projected to Decline 26% by 2026

The African smartphone market is projected to decline by 26% by 2026, marking the end of a three-year growth phase, according to recent research from Omdia. In the second quarter of 2026, the market experienced its first year-on-year contraction in three years, with shipments falling by 7%.

The rising cost of devices is pressuring consumer purchasing power across the continent. The entry-level segment, specifically devices under $100, saw a significant 34% drop in shipments. Increased memory component costs and supply chain shifts driven by AI demand are exacerbating supply and pricing pressures for lower-tier smartphones.

"We are witnessing the African smartphone market being forced to shift towards higher price segments," said Manish Pravinkumar, Lead Analyst at Omdia. "Manufacturers can no longer profitably produce $75 smartphones, while consumers with connectivity needs are increasingly required to raise their budgets to over $200."

Market performance varies by country. South Africa showed robust growth of 17% year-on-year, driven by enhanced consumer purchasing power and a continued shift towards 5G devices. Conversely, Nigeria saw an 11% decline due to price increases causing consumers to delay purchases. Egypt experienced a 26% drop following a 50% increase in local production costs, leading manufacturers to raise prices and disrupt sales channels.