The Nigeria mobile ecosystem is expected to experience some shake-up with the continuous steep fall in the adoption of feature phones.
More consumers are now opting for smartphones instead.
Euromonitor International, a strategic market research, data & analysis firm, said the wide availability of second-hand feature phones and smartphones because of their availability in the market will hinder the growth of new mobile phones in Nigeria.
In the report obtained by The Guardian, as of August, phone manufacturers have sold 18.5 million units in Nigeria with Infinix brand owning 75% of the market share. Samsung is next with 7.6 percent and Huawei with three percent.
The research credits the move towards smartphones because of the increasing population of Generation Z who prefer technologically advanced mobile phones.
According to Euromonitor, smartphone grew by 10 percent in retail volume terms in 2018 to reach six million, while feature phones record five percent retail volume growth in 2018 to reach 12 million units.
The mobile ecosystem is expected to be charged up competitively following the influx of Chines manufactures and domestic players such as Zinox Technologies and AfriOne, among others.
These companies are expected to lead strong price competition, with the Chinese firms offering cheaper smartphones for different segments of the population, particularly low end and middle-income consumers.
Euromonitor noted that the price competition will help drive volume sales of smartphones over the forecast period.
The report observed that Transsion Holdings with its Tecno and Itel brand dominates feature phones sales in Nigeria in 2018 because of its strong presence, distribution networks, availability and variety of affordable feature phones.
Euromonitor noted the slow recovery of the economy after the recession has affected the performance of premium brands like Apple and Samsung, who continue to struggle to grow.
It, however, said Apple increased volume share in 2018 due to the launch of the iPhone X late in 2017.
According to the market research firm, although domestic manufacturers are only present in the mobile phones, international players still dominate with a near monopoly presence, but that nevertheless, companies such as AfriOne, which launched the first locally made smartphone in April 2017, have scope to succeed.
Nigeria continues to be limited by its power challenges which negatively impacts the cost of production. Improvements in this and other infrastructure needs will help the performance of local brands and promote favourable competition with international players.