Omdia: Rising costs are reshaping Africa’s $100 smartphone market, with Q2 shipments falling 34% this year

IT House reported on August 17 that Omdia’s latest report pointed out that the smartphone market below $100 in Africa (IT House note: the current exchange rate is approximately 674.9 yuan) is facing increasing pressure, and rising memory prices are squeezing the profit margins of entry-level devices. Data shows that in the second quarter of 2026, Africa's smartphone shipments below $100 (approximately 674.9 yuan at the current exchange rate) fell by 34% year-on-year. Manufacturers are increasingly turning to financing cooperation, channel partnerships, refined inventory management and the launch of higher-value devices to strike a balance between affordability and profitability. For more than a decade, smartphones costing less than $100 (approximately 674.9 yuan at current exchange rates) have been driving digital penetration in Africa. Such devices are often consumers' first mobile phones, often used as their first financial accounts, and for many, their only computing device. But by 2026, this growth engine is coming under increasing pressure. In the second quarter of 2026, overall smartphone shipments in Africa fell by 7% year-on-year, while the decline in shipments of models below US$100 (about 674.9 yuan at the current exchange rate) was much steeper, reaching 34%. Growing demand for DRAM and NAND memory chips in artificial intelligence data centers is exacerbating a global memory supply shortage and driving up component costs. Currently, memory accounts for nearly 60% of the total bill of materials cost of mobile phones below US$400 (current exchange rate is approximately 2,699 yuan), and memory accounts for more than 64% of devices below US$99 (current exchange rate is approximately 668.1 yuan). In sub-Saharan Africa, the price of an entry-level smartphone can cost up to 73% of a low-income adult’s monthly income. Faced with inevitable cost changes, manufacturers are making adjustments from product portfolios, inventory management, financing solutions, pricing strategies to operational execution to defend market share and profitability: Adjust specifications