Rising Chip Prices Hinder Affordable Smartphones in Africa

The rising cost of memory chips, primarily due to increased demand from artificial intelligence data centres, is threatening the availability of affordable smartphones in Africa. Shipments of smartphones priced below $100 fell by 34% year-on-year in the second quarter of 2026, according to research firm Omdia.

This decline poses a significant challenge for low-income consumers in Nigeria, where the cost of imported electronics and other expenses already affect retail prices. A report by The Condia found that prices for six smartphone models from brands like Tecno, Infinix, Oppo, and itel increased between January and June 2026, with rises ranging from about seven percent to over 20 percent.

Jumia's chief executive, Francis Dufay, indicated that consumers are adjusting to higher prices by opting for lower specifications. This situation complicates Nigeria's digital inclusion efforts, as access to mobile internet relies on affordable devices, which are increasingly out of reach for many consumers.