Shipments of smartphones costing less than $100 in Africa dropped by 34 percent year-on-year in the second quarter of 2026, according to market research firm Omdia. The decline reflects mounting pressure on device makers as memory chip costs have risen sharply, driven by demand from other industries, forcing manufacturers to increase prices, reduce specifications or discontinue budget-focused models. Memory costs have surged approximately 350 percent since the previous year, an IDC research director said, with costs still climbing. The pressure is reshaping the global smartphone market, with existing models becoming almost 15 percent more expensive globally in 2026, while newly launched models cost roughly 25 percent more than those released a year earlier.
The affordability challenge is particularly acute in Africa, where about 81 percent of smartphones shipped in 2025 cost less than $200. Data from the GSMA showed that roughly 76 percent of the Sub-Saharan African population does not own a smartphone, while only about 24 to 25 percent uses mobile internet. An entry-level smartphone can consume between 73 and 95 percent of an average or low-income earner's monthly wage in the region, according to supplied figures. Rising handset prices could make it harder for millions to access mobile internet even where broadband networks exist.
The GSMA has projected that nearly 800 million additional people will use mobile internet by 2030. However, with manufacturers now directing limited microchips and memory towards premium devices offering higher margins, the supply of entry-level models faces additional pressure. IDC projected global smartphone shipments to decline by 13.9 percent in 2026, with no return to growth expected until at least 2028.
Some consumers may turn to alternatives such as buy-now-pay-later arrangements, device-financing schemes or refurbished phones as new smartphones become more expensive. However, no available data shows how many African consumers have switched to these options or how demand has increased as a result of rising prices.