Surge in Ultra-Low-Cost Phones as Brands Like Tecno, Itel Stack up Value in Africa

The demand for ultra-low-cost smartphones is reshaping Africa’s mobile device landscape. In Q2 2025, models priced under US$100 saw shipments soar by 38%, according to Canalys, as consumers in low and middle-income segments seek affordable access to the internet and connect via digital services.

Why the Ultra-Cheap Phone Boom

Several dynamics are driving this trend. First, easing inflation and stronger currencies in Nigeria, Egypt, and South Africa bolstered consumer purchasing power. Secondly, manufacturers and distributors are pushing more “entry-level” devices, often backed by financing plans and operator subsidies. TRANSSION brands (Tecno, Itel, Infinix) continue to lead this segment, leveraging both strong brand recognition and cheaper production costs.

5G features are sometimes included even in lower-end models or via promotions, which has helped accelerate uptake of newer technologies in previously under-served markets. More partnerships between device makers and mobile operators, especially in urban-rural linkups, are making low-cost phones more available.

Risks & Considerations

However, cheaper doesn’t always mean better. There are concerns over device quality, software updates, and long-term durability. Import regulations in some countries remain a hurdle. Also, while ultra-low-cost phones increase access, they sometimes offer limited specs — weak cameras, low RAM, and no or minimal warranty. These trade-offs matter when comparing value.

What’s Next

The ultra-budget category is expected to continue growing rapidly. Local manufacturing, tariff reform, and smarter supply chains could help reduce costs further. With smartphone penetration still just breaching 50% of total connections, especially in rural areas, there’s plenty of room for growth. Brands that can balance cost, quality, and reliable after-sales support are positioned to win.