IDC’s latest research figures have shown that smartphone shipments are set to total 155 million units this year in the Middle east and Africa region.
Middle East and Africa (MEA) smartphone shipments are set to total 155 million units in 2015 after increasing 66% year on year during the first quarter to reach more than 36 million units, according to the latest figures announced today by global technology consulting firm International Data Corporation (IDC). The company’s ‘Q1 2015 Mobile Phone Tracker’ shows that smartphones accounted for 63% of the handsets shipped in the Middle East during the quarter and 47% in Africa. This comes at the expense of feature phones, which suffered year-on-year declines of around 20% in both regions and will make up just 27% of the overall MEA handset market by the end of 2019.
The growth in smartphones in the MEA region is being spurred by Google’s Android and Apple’s iOS, with the two platforms accounting for over 95% of the smartphones shipped in Q1 2015. Shipments of devices featuring these operating systems increased by a combined 67% year on year. In the Middle East, Android currently represents 80% of market’s volume, while iOS accounts for 17%; in Africa, these figures stand at 89% and 7%, respectively. Android is particularly dominant in the low to mid-priced bands, while iOS is mainly found in the $450+ price category.
BlackBerry once again suffered significant year-on-year declines across the region in Q1 2015, with the vendor’s shipments falling 14% in Africa and 29% in the Middle East. “The launch of a number of new models by the vendor seems to have had little impact on lifting the BlackBerry brand out of its continuing decline,” says Isaac T. Ngatia, a senior research analyst at IDC. “The loss of the corporate segment, spurred by the continued uptake of bring-your-own-device policies among the region’s enterprises, has had an adverse effect on BlackBerry’s performance in the market.”
The strong growth in the region’s smartphone market is largely being driven by the emergence of low-priced devices that are primarily powered by Android. Indeed, almost half of all the smartphones shipped across Africa (45.1%) in Q1 2015 were priced below $100, while almost 75% fall under $200. Low-priced smartphones are also having a considerable impact in the Middle East, with the $100–200 price band accounting for the market’s biggest share.
“This price bracket seems to be the sweet point for most vendors launching in the region, as well as for established vendors looking to increase their shares by targeting the lower end of the market,” says Nabila Popal, research manager for IDC’s Mobile Phone Tracker in the Middle East, Africa, and Turkey. “This has resulted in phones priced under $200 accounting for about 36% of the Middle East smartphone market, while at the other end of the spectrum the $450+ price band has seen its share fall from 25% in Africa and 48% in the Middle East a year ago, to 14% and 34% today.”
Nigeria and South Africa contributed significantly to the overall growth seen in Africa, with the countries experiencing year-on-year growth of 135% and 56%, respectively. Nigeria accounted for 14% of all smartphone shipments across the continent during Q1 2015, while South Africa was responsible for 12%. Samsung, Tecno, and Apple were the leading smartphone vendors in Africa during the quarter, with Huawei being ousted from the top three. The three leading vendors accounted for a combined 55% share of Africa’s smartphone shipments in Q1 2015.
For the Middle East region, Saudi Arabia and Turkey were the biggest markets, with the former accounting for share of around 20% and the latter for 17.6%. Saudi Arabia saw year-on-year shipment growth of 9.5%, while the Turkish market expanded 33% over the same period. The region’s fastest growth rate in Q1 2015was seen in Pakistan, where shipments increased 123% year on year. Samsung, Apple, and Huawei made up the top three smartphone vendors in the Middle East, together accounting for over 65% share of the market.
In terms of screen sizes, the market appears to be consolidating within the 4″–5.5″ range. “For the Middle East, 78% of all smartphone shipments in Q1 2015 fell into this bracket,” says Saad Elkhadem, a research analyst at IDC. “The strongest growth was seen for smartphones with screens of 4.5″ to 5.0″, with shipments of such devices increasing 130% year on year.”
Africa phones go flat
Africa’s mobile phone market declined 2.1% quarter on quarter in Q3 2018 according to the latest figures from IDC.
The global technology research and consulting firm newly released Quarterly Mobile Phone Tracker shows overall shipments for the quarter totalled 52.6 million units, with feature phone shipments falling 2.7% QoQ and smartphone shipments declining 1.3% over the same period.
Transsion brands (Tecno, Infinix, and Itel) led the feature phone space in Q3 2018, with a combined unit share of 58.2%. Nokia was next in line with 11.7% share. Transsion, Samsung, and Huawei dominated the smartphone space with respective unit shares of 34.9%, 21.7%, and 10.2%. However, in value terms, Samsung led the smartphone market with 37.2% share, followed by Transsion (21.0%) and Huawei (13.0%).
There were differing fortunes in the region’s three major markets, with Nigeria suffering a heavy 11.6% QoQ decline in mobile phone shipments, while South Africa and Kenya saw respective QoQ growth of 8.5% and 7.9% in Q3 2018.
“The decline in Nigeria stemmed from a slowdown in government spending, ongoing warfare in the country’s northern states, and market uncertainty in the lead up to elections,” says George Mbuthia, a research analyst at IDC. “In South Africa, the market’s growth was spurred by the penetration of low-end devices from brands such as Mobicel, Mint, and Nokia, while the launch of entry-level smartphones helped drive growth in Kenya despite increases in taxes and fuel prices placing a significant burden on disposable income in the country.”
While feature phones remain steadfastly popular across Africa, particularly in more rural areas, consumers are increasingly being attracted by smartphone offerings from Chinese brands such as Xiaomi, Oppo, and Huawei, which are actively targeting feature-oriented customers at more economical price points.
“There is a new wave of Chinese brands aggressively pursuing growth opportunities in the region, while the more-established Huawei is also accelerating its marketing efforts and expanding its distribution budget,” says Ramazan Yavuz, a research manager at IDC. “These brands have quickly progressed along the learning curve and evolved their offerings to perfectly reflect the realities of the region by addressing the diverse pricing and feature needs of the consumer base.”
Looking ahead, IDC expects Africa’s overall mobile phone market to reach 58 million units in Q4 2018, spurred by the festive season and online consumer events such as Black Friday. The introduction of more affordable smartphones in the African market will help drive progress in this space over the coming quarters, while the share of feature phones will decline steadily as the transition to smartphones gathers momentum.
Mobile money to cross borders
Orange and MTN launch pan-African mobile money interoperability to scale up mobile financial services across Africa.
Two of Africa’s largest mobile operators and mobile money providers, Orange Group and MTN Group, today announced a joint venture, Mowali (mobile wallet interoperability), to enable interoperable payments across the continent. Mowali makes it possible to send money between mobile money accounts issued by any mobile money provider, in real time and at low cost.
Mowali will immediately benefit from the reach of MTN Mobile Money and Orange Money, bringing together over 100 million mobile money accounts and mobile money operations in 22 of sub-Saharan Africa’s 46 markets. Mowali is ready to enable interoperability between digital financial service providers beyond MTN and Orange operations and markets, to support the existing 338 million mobile money accounts in Africa.
Mowali is a digital payment infrastructure that connects financial service providers and customers in one inclusive network. It functions as an industry utility, open to any mobile money provider in Africa, including banks, money transfer operators and other financial service providers.
The objective of Mowali is to increase the usage of mobile money by consumers and merchants. Mowali enables money to circulate freely between mobile money accounts from any operators in all countries. From the customer’s point of view, this means “I can pay or receive money anywhere from my mobile account regardless of my operator”. The system will unlock further innovation in the digital financial space within the continent.
For Stéphane Richard, Chairman & CEO of Orange, “by providing full interoperability between platforms, Mowali will provide an important step forward that will allow mobile money to become a universal means of payment in Africa. Increasing financial inclusion through the use of digital technology is an essential element in furthering the economic development of Africa, particularly for more isolated communities. This solution embodies Orange’s ambition to be a leading player in the digital transformation of the continent. By joining forces with another of Africa’s market leaders, MTN, we aim to accelerate the pace of this transformation in a way that will change the lives of our customers by providing them with simpler, safer and more advantageous services. “
“One of MTN’s goals is to accelerate the penetration of mobile financial services in Africa, Mowali is one such vehicle that will help us achieve that objective. Furthermore, co-operation and partnerships that help us accelerate the pace of development and overcome some of the scale, scope and complexity of challenges that society faces are key. This partnership with Orange is therefore an important step in helping us play a meaningful role in supporting the United Nations’ Sustainable Development Goals related to eliminating extreme poverty and enhancing socio-economic development in the markets we operate in and beyond. Thus giving our customers access to a bright, digital future.” said Rob Shuter, Group President and CEO of MTN.
The GSMA supports the Mowali initiative as interoperability at this scale is a key accelerator for both financial inclusion and Mobile Money usability across Africa. “Today, there are over 690 million mobile money accounts around the world. Mobile money services have become an essential, life-changing tool across Africa, providing access to safe and secure financial services but also to energy, health, education and employment opportunities. The creation of Mowali will help to further transform mobile financial services throughout the African region. It demonstrates the mobile industry’s continued leadership and commitment to driving financial inclusion and economic empowerment through industry collaboration. The GSMA is proud to support its development,” said Mats Granryd, Director General, GSMA.
“Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome, in support of financial inclusion. With Mowali, Orange and MTN deliver a solution that will enable them, and other companies, to scale digital financial services across Africa, faster, to everyone—including the poor,” said Kosta Peric, deputy director of Financial Services for the Poor, at the Bill & Melinda Gates Foundation “This is a signal that a new wave of innovation, which can help alleviate poverty and drive economic opportunity, is coming. We’re pleased to see an implementation of Mojaloop—an open source payment platform available to operators across the sector—help achieve that.”