African battle of the low price smartphones

A potential low-to-mid-range smartphone war is emerging in Africa, following three high profile launches on the continent this year from Intel, Microsoft and Nokia.

The Yolo, from chipmaker Intel, became available in Kenya via mobile operator Safaricom late last month in the East African country.

Meanwhile, earlier this week, Chinese telecommunications equipment company Huawei joined forces with software maker Microsoft to announce the launch of the 4Afrika smartphone, which is available initially in South Africa, Kenya, Nigeria, Morocco, Egypt, Angola and Côte d’Ivoire.

Both smartphones, which are priced below the $200 mark, have been first launched in Africa just weeks after they were unveiled at the Computer Electronics Show (CES) in Las Vegas in January.

Also, Nokia this month unveiled what it calls the ‘most affordable Windows Phone 8 smartphone’, the Lumia 620, in markets such as South Africa. According to tech blog Engadget, this device, though, is priced at $230.

All these companies are going big on African markets characterised by the low take up of smart devices.

According to Microsoft, Africa’s smartphone penetration rate currently stands at just 10% of mobile phone users on the continent.

Meanwhile, South African based mobile operator, Vodacom, has this week released numbers that say its active smartphone users have amounted to just 29.2% of its subscriber base at the end of the fourth quarter in 2012.

Steven Ambrose, managing director at Strategy Worx, has told ITWeb Africa that tech and mobile companies see Africa as one of the last frontiers for growth in the smartphone market.

“Smartphone penetration in Africa is anywhere between 10% and 17% with some countries as low as 3%; so, the potential for growth is seen to be absolutely insane,” said Ambrose.

“Intel, Microsoft as well as Nokia are all focusing on trying to bring cost effective smartphones to Africa – so that is what is happening,” he added.

“From a sheer focus point of view Africa is where it’s happening,” he said.

East Africa analyst for Informa Telecoms & Media, Danson Njue, says that handset makers and tech firms are becoming more aware about launching devices that the African people can afford.

“With the launch of these smartphones, I think phone manufacturers are bringing these devices to make sure that the continent is not left behind and remains on par with the rest of the world,” he explained.

In a smartphone world dominated by Samsung and Apple, below is a table comparing the Microsoft, Intel and Nokia smart devices are entering Africa’s market this year.