AI is making Africa’s cheapest smartphones harder to afford

Rising demand for artificial intelligence (AI) technologies is making it increasingly difficult for Africans to afford new smartphones, as manufacturing costs for cheaper devices rise. In 2026, the continent's smartphone market is projected to experience its first annual decline in three years, with shipments expected to drop by 26% according to Omdia, a global technology market research firm.

Lower-priced smartphones, already representing over four-fifths of sales in Nigeria and across Africa in 2025, are particularly vulnerable as their production becomes less profitable. Market analysts predict that device prices will push up, with the average selling price of African smartphones rising by $41 to $202 annually.

The surge in AI-related demand for memory and semiconductors has driven up costs for manufacturers who rely on these components. Micron Technology, a leading semiconductor company, recently exited its consumer-focused business to focus on faster-growing data center segments. British telecommunications giant BT also warned that smartphone prices could surge due to increased demand for chips in the AI boom.

This trend is affecting affordability, as smartphones now consume nearly half of a low-income earner's monthly income in the region. With many Nigerians and others across Africa struggling to purchase entry-level devices, higher prices risk pushing millions further offline. For those who already own smartphones, delays in upgrading are likely, while potential buyers may have to stretch their budgets to $200 or more for a new device.