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Coronavirus knocks smartphone supply to Africa

Africa , 10 Mar 2020
The continued embargo on China’s manufacturing sector over the Coronavirus will impact Africa's smartphone market.
The continued embargo on China’s manufacturing sector over the Coronavirus will impact Africa's smartphone market.

Experts have said the continued embargo on China’s manufacturing sector over the COVID-19 outbreak (Coronavirus) will see a drop in smartphone shipments to Africa.

According to the International Data Corporation (IDC), the overall African smartphone market will shrink by 8.4% in Q1 2020 resulting in 48.7 million smartphone units.

“The closure of factories in China following the COVID-19 outbreak has severely disrupted the supply chain for components used in the production of smartphones,” said Ramazan Yavuz, a research manager at IDC.

“The fallout from the COVID-19 outbreak is compounding existing local and macroeconomic challenges across Africa, and we expect smartphone shipments to the continent to decline 14.9% QoQ in Q1 2020,” Yavuz added.

Africa’s dependency on low cost smartphones from China is a factor that will continue to impact growth in this market.

“Transsion brands (Tecno, Itel, and Infinix) continued to dominate Africa's smartphone space in Q4 2019, with 40.6% unit share. Samsung and Huawei followed in second and third place, with respective unit shares of 18.6% and 9.8%. The Transsion brands Tecno and Itel also dominated the feature phone landscape with a combined share of 69.5%. HMD placed third with 10.2% share,” the IDC report stated.

In the last quarter of 2019 Africa’s mobile phone market grew by 3.8% overall, while shipments grew at 5.4%.

The global market analysis and research firm attributed the rise due to the holiday season which includes Black Friday sale and Cyber Monday discounts.

“Africa's two largest markets - South Africa and Nigeria experienced modest YoY growth rates of 2.0% and 5.2%, respectively. South Africa's smartphone market grew 2.2% YoY in Q4 2019 to total 6.5 million units,” the report added.

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