SA bucks Africa’s smartphone market downturn

SA bucks Africa’s smartphone market downturn


Across Africa, smartphone shipments fell 7%, while prices rose by $41 year-on-year to $202.

Across Africa, smartphone shipments fell 7%, while prices rose by $41 year-on-year to $202.

South Africa’s smartphone market grew 17% year-on-year in the second quarter of 2026, bucking a broader downturn across Africa as rising device prices put pressure on consumers.

According to research firm Omdia, smartphone shipments across Africa fell 7% year-on-year in the second quarter, marking the market’s first annual contraction in three years. Omdia forecasts the overall African smartphone market will decline 26% in 2026.

South Africa was the strongest performer among the major markets tracked by Omdia, helped by stronger consumer purchasing power and the continued shift towards 5G smartphones.

The growth is also making South Africa an important market for vendors such as Samsung and Honor, as more consumers buy devices above the entry-level price range.

Across the continent, however, affordability is becoming a bigger problem.

Shipments of smartphones priced below $100 fell 34% year-on-year during the quarter, a decline of almost three million units. Omdia says higher memory costs and supply chain pressures linked to growing demand for AI-capable devices are adding to the pressure on entry-level smartphones.

“We’re witnessing a forced upward shift in the African market,” says Manish Pravinkumar, principal analyst at Omdia. “Vendors can no longer profitably manufacture $75 smartphones, while consumers who need connectivity are increasingly having to stretch their budgets towards $200-plus devices.”

The average selling price of a smartphone in Africa increased by $41 year-on-year to $202 in 2Q26, reversing the price reductions seen in the same quarter last year.

The impact has varied across the continent. Nigeria’s smartphone shipments fell 11%, with higher prices prompting some consumers to delay purchases. Egypt recorded a 26% decline after manufacturers introduced significant price increases during the quarter, following a reported 50% increase in local production input costs since January. Kenya’s shipments fell 15%, with the sub-$150 segment particularly affected.

The higher prices are also changing the competitive landscape.

Transsion, which owns brands including Tecno, Infinix and iTel, remained the market leader, but its shipments fell 14%. Its strong presence in the sub-$100 segment left it exposed to the sharp drop in demand for cheaper devices.

Samsung increased its shipments by 15%. Omdia says the company’s inventory management helped it maintain stock levels for key models, including the Galaxy A07 and A17.

Honor also continued to grow, helped by its focus on smartphones priced above $300. South Africa is a key market for the company, accounting for about 60% of its regional volumes, according to Omdia.

Xiaomi and Oppo recorded shipment declines of 30% and 25%, respectively, as both took a more cautious approach to the entry-level market amid rising component costs.

“Average selling prices increased by $41 year-on-year to $202, reversing the aggressive price reduction seen in 2Q25,” says Pravinkumar. “This reflects both a shift towards higher-priced devices and price increases within individual segments, reshaping the African vendor rankings.”

With smartphones becoming more expensive, financing could become increasingly important for consumers who cannot afford to pay for higher-priced devices upfront.

Omdia expects device financing to play a bigger role as vendors look for ways to make more expensive smartphones accessible to consumers.

Meanwhile, the pressure is not limited to Africa. IDC expects global smartphone shipments to fall 13.9% in 2026 to 1.09 billion units, which it says would be the steepest annual decline in the market’s history.

In January, Counterpoint research director Tarun Pathak warned that rising memory costs and supply constraints would put pressure on the global smartphone market in 2026.

“Price hikes in smartphones have already begun to surface. Against this backdrop, we have revised our forecast for 2026 by reducing shipment estimates by 3%,” he said.