Tecno Displaces Samsung To Emerge As Top Smartphone Brand In 2020 In Africa: Counterpoint
Tecno, a Transsion Group smartphone brand, has displaced Samsung to emerge as Africa’s top smartphone brand for the first time in 2020, owing to model launches in the affordable segment and continued market spending, according to Counterpoint Research’s Market Monitor report.
The Transsion brand achieved this feat despite the smartphone shipments falling by 6.7 per cent on-year in Africa. The first half of the year was battered with retail and supply chain disruptions due to the COVID-19 pandemic but the pent-up demand came as a breather in the second half, the report said.
Samsung, which declined to second position, witnessed a fall in market share in all price segments due to supply chain disruptions.
The Korean handset maker, however, has a strong brand image and strength in the formal channels, and its success will be driven by the mid-segment A series going forwards, the report added.
At the third position with a market share of 12 per cent, Itel rebounded in the second half due to pent-up demand. Itel’s price-friendly brand image helped it perform well, and it will continue to gain market share from grassroots rivals in smaller markets.
Huawei held on to the fourth spot, mainly due to resilient performance through the first three quarters of the year, despite headwinds from the US trade ban. Despite good shipment volumes of Y-series, its shipments fell sharply in Q4, and are expected to slide further in 2021.
Newly spun-off Honor, however, may gain from Huawei’s decline.
Rounding off at the fifth position, Infinix has the highest average selling price (ASP) among Transsion brands, but they are falling down to adjust with market realities. Infinix is expected to gain further market share in 2021.
Tecno displaces Samsung to emerge as top smartphone brand in 2020 in Africa: Counterpoint
Xiaomi witnessed the sharpest shipment growth of 126 per cent on-year and posted strong sales numbers in Egypt, Morocco, Nigeria, and Kenya. It is expected to see market gains in 2021.
Oppo’s shipments grew 57 per cent on-year and it is likely to make a strong push in the high mid-price segment.
“Q2 2020 was especially difficult as demand was hammered when most countries entered lockdowns. Smartphone shipments during the quarter saw a YoY drop of 27 per cent,” Senior Analyst Yang Wang said, on market dynamics, and added that 4Q20 posted an on-year growth of 1.5 per cent, which is the best quarter on record.
Wang further said the ASP decreased 15 per cent between 2018 and 2020, with the sub-US$200 segment accounting for over 80 per cent of Africa’s smartphone sales.
“We can expect further replacement of feature phones by entry-level smartphones, leading to the ASP likely remaining under pressure in the next few years,” he added.
