Smartphone usage is growing exponentially, with over 6.5 billion active users worldwide. In Nigeria, there has been a tremendous increase in mobile phone usage and purchase in recent years. Whether you are a business interested in entering the Nigerian smartphone market or simply want to learn more about this rapidly growing market, read on to discover some key marketing dynamics that are shaping the future of Nigeria’s booming smartphone market.
The Age of Smartphones
Smartphones are handheld devices that combine the features of a traditional mobile phone with more advanced computing power and connectivity. Smartphones are termed so because of their advanced features. They are multifunctional, intelligent, and user-friendly, capable of performing a range of tasks, and have become an essential part of our lives, and it is quite hard to imagine a world without them.
Nigerians are so keen to follow the trends, especially when it comes to owning foreign products. We have evolved from the days of Nokia 3310 to Java phones, Sony Ericsson, and Blackberry just to mention a few, and we are now in the days of Android smartphones.
The country is currently having a surge in smartphone usage with its growth having a major impact on several sectors of the country’s economy. The market for smartphones and accessories in Nigeria is booming, and this post covers major aspects you need to know about the demand, growth, and how top brands are dominating this Industry.
Growth and Demand for Smartphones in Nigeria
Due to the growing population and demand for internet services, Nigeria has one of the largest smartphone markets in Africa. The market is growing at a staggering speed, with market penetration estimated to reach 66% by 2025.
According to the Nigerian Communications Commission (NCC), the country had around 222.5 million telephone customers at the end of 2022. With over 215 million active mobile phone subscriptions. Given the huge market opportunities, the country still relies on foreign countries, especially Asia, for device manufacturing.
Factors Contributing to the Growth of Smartphone Usage
The growth of smartphones in Nigeria is driven by a number of factors, including the increasing affordability of mobile devices and services, the growing population, and the expansion of mobile networks into rural areas.
The smartphone finance schemes have also accelerated the growth of smartphone usage in Nigeria and other sub-Saharan African countries. This scheme has aided intended users without sufficient funding at hand to own a device of their choice after making an initial deposit and the outstanding balance spread over a duration of time.
Many financial institutions and telecom companies in Nigeria are also offering their customers a variety of plans and packages to enable them easily purchase a device. There are a variety of other reasons contributing to these growths, which will be covered in detail as you read on.
Key Players in the Smartphone Market in Nigeria
Smartphones have come a long way from being ultra-premium luxury devices in the late 2000s. Today, even Apple offers a range of iPhones at entry-level prices, making smartphones more accessible to people of all income levels.
As the global smartphone market becomes increasingly saturated, manufacturers must compete not only with rival companies but also with the incredibly lucrative resale market.
In addition, many devices with a more competitive price-performance ratio are built specifically to compete in markets where the greatest growth is expected in the coming years, such as sub-Saharan Africa, Latin America, and India.
As of April 2023, Tecno was recorded as the most-sold phone brand in Nigeria leading the market of all mobile device vendors. Samsung, the world’s largest smartphone manufacturer, stepped up the game by pioneering strategy, offering unique low-cost devices to these emerging markets to gain regional market share.
Across Africa, this strategy has worked well and until recently Samsung was the leading manufacturer on the continent. Transsion brands (Itel, Infinix, and TECNO), have taken a different approach to compete with Samsung in emerging markets.
Instead of trying to beat Samsung at its own game by offering high-end devices, Transsion has focused on offering affordable, entry-level devices that are tailored to the needs of emerging market consumers.
According to reports, in 2020, TECNO had reportedly replaced Samsung as the leading brand in Africa. In terms of market dominance, Tecno, Infinix, Samsung, and Apple are the top four brands in Nigeria with the highest number of market shares as of September 2023, according to a Statcounter report.
These brands have dominated the market and have become well-known for a variety of reasons, including their focus on distinctive features that appeal to their target customers and their broad offering of devices at various price points.
However, Apple is still considered one of the most aspiring smartphone makers, with Nigeria having the highest per capita wealth of any sub-Saharan country.
Opportunities in the Smartphone Industry in Nigeria
The smartphone market in Nigeria is booming, with revenue expected to reach US$9.8 billion in 2024, according to Statista. This growth is expected to continue in the coming years, impacting the development of the country’s mobile market, and making Nigeria a desirable prospect for smartphone brands.
What are the Chances of Success for New Entrants in the Emerging Smartphone Nigerian Market?
The emerging smartphone market in Nigeria is very lucrative. According to a 2023 report, the percentage of people with access to smartphones in Nigeria is between 11.8% and 18.9%, based on a population of over 211 million people and estimates 122.5 million internet users in Nigeria as of January 2023 by DataReportal.
Making Nigeria a large market for smartphone brands, however, the industry is very competitive with dominant players like Samsung, Tecno, Infinix, Xiaomi, and Apple. Despite the competition, there are still opportunities for new entrants with sound market entry strategies.
Some factors driving the demand for the use of smart devices, making way for smartphone brands are the rise of mobile banking, e-commerce platforms, and digitalization creating opportunities for both new and existing brands.
How Webhaptic Intelligence Can Help
With over a decade of experience in marketing research, we can assist you with a thorough understanding of your market, and develop effective market entry strategies. We have successfully helped diverse firms across Africa with:
- Market sizing and feasibility studies
- Competitive analysis
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- Data collection and analysis and many more.
Don’t just take our word for it; check out our case studies of successfully conducted projects. Contact us at info@webhaptic.com
Sources:
- https://explodingtopics.com/blog/smartphone-stats
- https://gs.statcounter.com/vendor-market-share/mobile/nigeria
- https://www.statista.com/statistics/467187/forecast-of-smartphone-users-in-nigeria/
- https://datareportal.com/reports/digital-2023-nigeria
- https://data.gsmaintelligence.com/api-web/v2/research-file-download?id=45121567&file=2794-160719-ME-SSA.pdf
- https://www.statista.com/statistics/1061355/market-share-held-by-mobile-phone-vendors-in-nigeria/
- https://punchng.com/the-nigerian-smartphone-market-in-2022/