Africa’s smartphone market recorded its first year-on-year decline in three years in the second quarter of 2026, with shipments falling 7 per cent as rising device prices put growing pressure on affordability across the continent, according to research from market intelligence firm Omdia.

The downturn was particularly severe in the sub-$100 segment, which has traditionally provided an entry point to digital connectivity for Africa’s emerging middle class.

Shipments in that segment fell 34 per cent year on year, equivalent to a reduction of almost 3 million devices, as higher memory costs and changes in supply chains driven by artificial intelligence placed additional pressure on the availability and pricing of entry-level smartphones.

“We’re witnessing a forced upward shift in the African market,” said 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,” he added.

The decline was uneven across the continent, with significant differences between individual markets reflecting local economic conditions, consumer purchasing power and policy environments.

South Africa was the standout performer, with smartphone shipments increasing 17 per cent year on year as stronger purchasing power supported continued adoption of 5G devices.

The growth has increased the importance of the South African market for manufacturers such as HONOR and Samsung, as more consumers moved towards devices priced above the entry-level range.

Nigeria, by contrast, recorded an 11 per cent decline, with retailers reporting weaker sales as higher prices prompted consumers to postpone purchases.

Egypt saw one of the sharpest contractions, with shipments falling 26 per cent after manufacturers introduced substantial price increases during the quarter.

According to the Mobile Division of the Federation of Egyptian Chambers of Commerce, local production input costs had risen 50 per cent since January, forcing manufacturers to raise prices significantly from the middle of the quarter onwards.

The increases disrupted traditional sales channels and led some consumers to delay upgrading their handsets.

Kenya recorded a 15 per cent decline, driven by higher device prices, particularly in the sub-$150 segment where demand remained concentrated.

The wider price shock was reflected in average selling prices across the African market.

“Average selling prices increased by $41 year on year to $202, reversing the aggressive price reduction seen in the second quarter of 2025,” Pravinkumar said.

“This reflects both a shift towards higher-priced devices and price increases within individual segments, reshaping the African vendor rankings,” he added.

Samsung gained ground as the market moved towards more expensive devices, while market leader TRANSSION faced greater pressure because of its exposure to the entry-level segment.

TRANSSION, whose brands include TECNO, Infinix and iTel, saw shipments fall 14 per cent and its market share decline.

Its strong presence in the sub-$100 category left the group particularly exposed to the sharp contraction in demand for the cheapest smartphones.

Samsung, meanwhile, increased shipments by 15 per cent as demand shifted towards higher price bands.

Omdia attributed the performance partly to strategic inventory management, which allowed Samsung to maintain multi-month stock buffers for key volume products including the Galaxy A07 and A17.

HONOR continued its expansion for a second consecutive quarter, benefiting from its focus on the more resilient $300-plus mid-to-high-end segment.

That strategy gives the company less exposure to component constraints affecting entry-level devices.

HONOR has also continued to focus on markets such as South Africa, which accounts for roughly 60 per cent of its regional volumes.

Xiaomi and OPPO, however, recorded substantial declines of 30 per cent and 25 per cent respectively.

Both companies prioritised profitability and adopted a more disciplined approach to the highly price-sensitive entry-level market as component costs increased.

Omdia expects the pressures facing manufacturers and consumers to persist, with vendors increasingly forced to reassess how they make smartphones affordable without sacrificing margins.

“Africa’s smartphone market is entering a reset, with Omdia forecasting a 26 per cent decline in 2026, ending a three-year growth streak,” Pravinkumar stated.

Device financing is expected to become increasingly important as higher prices make upfront purchases more difficult for consumers.

TRANSSION, already one of the leading players in device financing across Africa, is looking to expand that capability alongside its wider portfolio strategy.

Xiaomi is also increasingly exploring financing partnerships to widen access to higher-value smartphones and support growth beyond the entry-level segment.

“As cost and currency pressures persist, the next phase of competition will depend on how effectively vendors can balance affordability, volume and profitability,” Pravinkumar explained.

The latest figures suggest that Africa’s smartphone market is undergoing a significant structural shift, with manufacturers increasingly focusing on higher-value products while consumers at the lower end face greater barriers to securing affordable devices.