The African smartphone market recorded its first year-over-year (YoY) decline in three years in 2Q26, with shipments falling 7% as rising device prices put increasing pressures on affordability across the continent, according to Omdia‘s latest research. The impact was most pronounced in the sub-$100 segment, which has long served as the entry point to digital connectivity for Africa’s emerging middle class. Shipments in the segment fell 34% YoY, representing a decline of nearly 3 million units, as rising memory costs and AI-driven shifting supply chain placed further pressure on entry-level smartphone availability and pricing.
“We’re witnessing a forced upward shift in the African market,” said Mr. 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”.
South Africa grows 17% while Egypt and Kenya decline amid cost and policy headwinds
Country performance varied significantly, reflecting differences in local market structures and policy environments. South Africa was the standout, growing 17% YoY, supported by stronger consumer purchasing power and the market’s continued transition to 5G devices. This strengthened its importance for vendors such as HONOR and Samsung, as more consumers purchased devices above the entry-level segment. Nigeria declined 11%, with retailers reporting weaker sales as higher prices led consumers to delay purchases. Egypt contracted 26% as manufacturers implemented significant mid-quarter price increases in response to a 50% increase in local production input costs since January, according to the Federation of Egyptian Chambers of Commerce’s Mobile Division. These increases disrupted traditional sales channels and prompted some consumers to postpone upgrades. Kenya fell 15%, driven by a combination of rising device prices particularly in the sub-$150 segment where demand remained concentrated.
Samsung grows, TRANSSION adapts as 26% price increase reshapes African smartphone market
“Average selling prices increased by $41 YoY to $202, reversing the aggressive price –reduction seen in 2Q25,” notes Pravinkumar. “This reflects both a shift towards higher-priced devices and price increases within individual segment, reshaping the African vendor rankings.”
Market leader TRANSSION (including TECNO, Infinix, and iTel) saw shipments fall 14% and its share decline, as its strong presence in the sub-$100 segment left it more exposed to the sharp contraction in the entry-level demand. Samsung performed strongly amid the shift towards higher price bands, growing shipments 15%, supported by strategic inventory management that allowed it to maintain multi-month stock buffers for key volume, including the Galaxy A07 and A17.
HONOR continued its growth trajectory for a second consecutive quarter, supported by its focus on the more resilient $300-plus mid-to-high-end segment. This reduces its exposure to component restraints affecting the entry-tier, while the vendor continued to focus on markets such as South Africa, which accounts for roughly 60% of its regional volumes. Meanwhile, Xiaomi (down 30%) and OPPO (down 25%) recorded shipment declines as both vendors prioritized profitability and took a more disciplined approach to the highly price-sensitive entry-level segment amid rising component costs.
Vendors rethink affordability strategies as Africa’s smartphone market resets
“Africa’s smartphone market is entering a reset, with Omdia forecasting a 26% decline in 2026, ending a three-year growth streak,” observes Pravinkumar. “Device financing will become an increasingly important part of vendors’ affordability strategies, particularly as higher device prices make upfront costs harder for consumers to absorb. TRANSSION, already one of the leading players in device financing across Africa, is looking to deepen this capability alongside its broader portfolio strategy. Xiaomi is increasingly exploring financing partnerships to broaden access to higher-value devices and support growth beyond the entry tier. As cost and currency pressures persist, the next phase of competition will depend on how effectively vendors can balance affordability, volume and profitability.”
Covered By: Mobility India / Omdia
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