Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

m-Services

Egypt smartphone market bucks COVID-19 decline trends

Article Image
Egypt managed to grow smartphone sales in the second quarter of 2020, while most markets in the Middle East and Africa suffered declines due to the COVID-19 pandemic.

This is according to the latest research conducted by International Data Corporation (IDC) which shows that Egypt's smartphone market grew 2.2% quarter-on-quarter, to total 2.88 million units by the end of June 2020.

This growth was spurred by vendors focusing on pushing affordable phones into the market and accelerating their shipments before new import taxes were introduced at the end of June, IDC said.

Samsung was the market leader in Q2 2020 with 23.8% unit share, followed by Oppo in second place and Xiaomi in third.

In terms of price bands, the quarter saw a remarkable shift to the ultra-low-end, with devices priced below $100 growing their share of the market from 17.5% in the first quarter to 30.5% in the second.

Meanwhile, the low-end category, with devices that range from $100 to $200, dropped to 57.1% of sales in the second quarter, compared to 66.5% in the first quarter. High-end devices that cost more than $400 made up just 2% of second-quarter sales in Egypt, a decline from 3.2% a quarter before.

Egypt smartphone market by price band.  (Source: IDC 2020)
Egypt smartphone market by price band.
(Source: IDC 2020)

"While COVID-19 did not halt demand for smartphones in Egypt, it certainly led to a change in market dynamics on both the supply and demand sides," said Taher Abdel Hameed, a senior research analyst at IDC.

"The price band and screen size trends indicate that consumers were opting for more affordable phones due to tighter budgets, while vendors supplied affordable models with higher specs to cope with challenging sales conditions during the pandemic."

Looking at 2020 as a whole, IDC forecasts smartphone shipments to Egypt to increase 2.9% year-on-year. The group believes that consumer demand will continue to be resilient in the second half of 2020 despite certain inhibitors at play in the market including new taxes on mobile phones, exchange-rate fluctuations and a general decline in the economy due to COVID-19.

IDC said that global vendors are still focused on the country, while marketing spend is expected to continue, which will likely help the market overcome these barriers.

— The Staff, Connecting Africa

Innovation hub

Story

Hot startup of the month: Nigeria's Tech Herfrica

Connecting Africa's hot startup is Nigeria's Tech Herfrica, a social impact organization that focuses on the digital and financial inclusion of women and girls in rural areas of Nigeria.

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: February 2024

By Omdia Analysts

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002