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The African smartphone revolution

Tom Manners
By Tom Manners
Johannesburg, 20 May 2013

Manufacturing and selling smartphones is big business, especially in emerging markets.

In late 2012, data analysis and corporate consulting company Strategy Analytics announced that humanity had produced one billion smartphones - up roughly 300 million devices in just one year.

If this statistic is to be trusted, it would mean that one in seven humans currently enjoys the fruits of intelligent mobile ownership.

That leaves roughly six billion people without access to an iOS, BlackBerry, Windows Phone or Android-enabled device. Significantly, Strategy Analytics also predicted that the next billion smartphones will be shipped by 2015 - 13 years less than the 16 it took to reach the 10-figure mark.

The bulk of this growth is expected to stem from developing territories such as Africa, China and India. To meet the demand, several handset manufacturers have entered these markets with smartphone offerings at aggressive price points.

Recently, Intel announced the introduction of its YOLO handset - developed to meet the needs of emerging consumers - to the Kenyan market at a cost of $125. Similarly, Nokia is making a go of African smartphone domination through its Lumia 620 and Asha offerings.

Right now, it seems every major developer is neck and neck for mobile market supremacy in Africa - but do they have the right formula?

What is an African smartphone?

Before entering a new market, taking the time to understand the needs of its consumers is a vital contributor towards a business' success.

At a glance

One in seven human beings enjoy the fruits of intelligent mobile ownership.
"The first billion smartphones in use worldwide took 16 years to reach, but we forecast the next billion to be achieved in less than three years, by 2015," says Strategy Analytics' senior analyst, Scott Bicheno.

With this in mind, do international handset manufacturers - the majority of which earned their stripes in developed markets - truly understand the uniquely African challenges facing local buyers?

According to Patrick Henchie, Nokia's senior manager: product marketing for South and East Africa, smartphone sales on the continent rely on a handful of features.

"An African smartphone is defined by a few things, like support for social networking services such as Facebook and Twitter, access to third-party networking like WhatsApp and Mxit, push e-mail and a vibrant application marketplace.

"Although several smartphone 'levels' may exist - smartphone and smartphone lite, as an example - in the African context, these are the elements consumers are most interested in."

Avi Mistry, enterprise lead at Intel South Africa, agrees.

"In the context of Africa, a smartphone is defined by the platform it operates from and the third-party application environment it encourages. Access to applications is the key to success in the intelligent mobile device market."

Where are the African apps?

One might argue that the bulk of applications available within smartphone marketplaces are created by developers in more established environments - discounting the needs of the African consumer.

To combat this, several industry players, including Microsoft and IBM, have introduced programmes to support local application development.

Smartphone domination in Africa might rely more heavily on access to mobile networks than the device itself.

In February, Intel announced a partnership with iHub, an African business incubator focused on the mobile application market, with the intention to finance developer training and sponsorships.

"Africa is sitting on a pool of would-be developers. It's vital that each of the major players in the local smartphone market participates in the personal growth of these individuals," adds Mistry.

Access to applications is the key to success in the intelligent mobile device market.

Despite the strategic investment, Henchie believes the greatest obstacle towards ubiquitous African smartphone adoption is still access to mobile data services.

"In order to get the most from a smartphone device, no matter how it's configured, a reliable mobile data connection is needed.

"In smaller African territories, the cost of mobile data is still prohibitive. This, coupled with limited network penetration in rural areas throughout the continent, makes it more challenging for handset manufacturers to reach new consumers. We're reliant on telecommunications operators for coverage."

Although leading African nations such as SA, Kenya, Ghana and Nigeria enjoy comprehensive cellular networks and competitive environments, the same cannot be said for every country on the continent. And this is the African smartphone market's greatest challenge.

"As the networks expand, we'll expand with them," says Nokia's Henchie.

With this in mind, smartphone domination in Africa might rely more heavily on access to mobile networks than the device itself. There's no doubt that equipping the next billion is a challenging order. Without affordable, ubiquitous data connectivity, will Africa be left behind?

First published in May issue of Brainstorm magazine.

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