A coalition of telecom operators, device manufacturers, and industry groups is working to launch smartphones priced at $40, a pivotal step toward increasing internet access for millions globally. Despite the momentum, doubts linger about the feasibility of producing these ultra-low-cost devices at scale.
At the recent Mobile World Congress in Barcelona, the GSMA announced its collaboration with major African mobile operators, including Airtel, MTN Group, and Vodafone, to pilot affordable 4G smartphones in six African nations—Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda. The initiative aims to connect an additional 20 million people to the internet by making smartphones more accessible.
Affordable smartphones are viewed as essential to bridging the digital divide, particularly in developing regions where many individuals are within mobile coverage yet remain offline due to high device prices. The GSMA’s Handset Affordability Coalition champions the creation of $40 devices to tackle this issue. Currently, commercial negotiations are ongoing to determine how manufacturers can meet this target price.
GSMA has engaged over 15 smartphone manufacturers, with seven showing explicit interest in the program. Alix Jagueneau, the coalition’s head of external affairs, noted that while the $30-$40 price point is hopeful, increasing costs for components, especially memory, are complicating matters. The final pricing for these devices will depend on various factors, including financing options and tax policies. High import duties and taxes in certain markets can add significantly to the final cost, making affordability a challenge.
While the GSMA has not finalised which manufacturers will participate, it aims to produce proof-of-concept devices soon, potentially leading to market entries by late 2026. However, no commitments from the pilot countries to lower import duties or taxes on entry-level phones have been made thus far.
Analysts express concerns over the practicality of reaching the $40 target given current component costs. There has been historical precedence where achieving lower price points was feasible, but today’s market dynamics, including thin profit margins and high demand for higher-capacity components, pose significant obstacles. The average smartphone selling price in the Middle East and Africa is presently around $188, underlining the gap that exists.
Feature phones, typically priced between $10 to $15, are still the primary option for many consumers in Africa, representing a substantial market share. Previous efforts, such as Google’s Android One initiative, aimed to promote low-cost smartphones but struggled to gain traction.
Jagueneau emphasised that for the initiative to succeed, a coordinated effort among operators, manufacturers, and governments is crucial. Improving access to affordable smartphones is vital for enhancing internet connectivity and fostering digital inclusion in underserved communities.
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