Smartphone vendors target affordable devices as market sees 2% Q2 growth
. Feature phones shipment drops by 6.4%, market to shrink by 7% in Q3
NIGERIA’S smartphone market grew two per cent in unit terms, quarter on quarter ( QOQ) in Q2 2021, according to the latest figures from global technology and consulting services firm International Data Corporation ( IDC).
However, the firm's Quarterly Global Mobile Phone Tracker also showed that feature phone shipments into the country declined 6.4 per cent over the same period. Feature phones accounted for 51.8 per cent of the market's overall shipments in Q2 2021, with smartphones responsible for the remaining 48.2 per cent share.
The smartphone market's growth in Q2 2021 was spurred by vendors launching various new models, increasing their investments in marketing activities, and shifting their product portfolios towards entry- level and mid- range devices.
Transsion’s Tecno, Itel, and
Infinix brands dominated the country's smartphone market in Q2 2021 with 76.9 per cent unit share. Samsung placed second with 10.0 per cent share, while Nokia and Xiaomi followed with respective shares of 3.7 per cent and 2.9 per cent.
Though many consumers prefer physical stalls, smartphone sales through online channels grew 7.8 per cent over the same period as etailers in the country improved their deliver y capabilities, facilitated secure payments, and capitalised on improved consumer confidence. Smartphone sales through offline retail channels grew 1.7 per cent QOQ in Q1 2021.
Feature phones continue to be the preferred secondar y device in the Nigerian market, mainly due to slow infrastructure development and the country experiencing constant power outages. The
major players in the feature phone space in Q2 2021 were Tecno with 45.8 per cent unit share, Itel ( 35.1 per cent), and Nokia ( 12.7 per cent).
Feature phone shipments declined as the devices now face stiff competition from ultra- low- end smartphones in the less than $ 100 price segment, whose affordability makes them more attractive to consumers. The transition from feature phones to smartphones is also accelerating as a result of more consumers demanding access to the Internet.
A Research Analyst with IDC, George Mbuthia, said: "With reduced consumer purchasing power due to the repercussions of the COVID19 pandemic, the entry- level less than $ 200 segment of the smartphone market continued to lead the way in Q2 2021 with 86.7 per cent unit share”.