- A $40 smartphone’s success in Africa is not about creating demand; it is about the economics of producing such a device under current market conditions.
- Practicality complements the price. Even in a $25 device, consumers will continue to prioritize battery life, storage and a seamless interface.
- The $40 smartphone market is a greenfield opportunity with only a few manufacturers present. However, the economics require a risk appetite given the component supply shortages.
Recently, handset vendors have increasingly discussed the possibility of extensively introducing affordable smartphones at an average selling price (ASP) of $40 in price-sensitive regions such as the Middle East and Africa (MEA), particularly Africa. The main objective of this approach is to expand digital access and bring more consumers online, improving technological inclusion across the region.