Indications are rife that the rising cost of smartphones, driven by an 80 per cent surge in memory chip prices, could slow Africa’s digital inclusion drive. This is the concern of experts and industry players, including MTN Group President and Chief Executive Officer, Ralph Mupita. Mupita raised the issue in Lagos during an engagement with fellows of the Media Innovation Programme of MTN Nigeria. He noted that one of the biggest challenges confronting the telecoms industry is the decline in smartphone shipments to Africa, which has dropped by 27 per cent. The pressure is coming from artificial intelligence infrastructure. The growing demand for memory chips from AI data centre developers has intensified competition for components used in mobile devices. Against projections that entry-level internet-enabled devices would fall to between $30 and $50, making smartphones accessible to millions, the minimum price is now expected to rise to between $80 and $100 due to rising memory costs.
“Memory prices have gone up by 80 per cent, impacting the cost of data-capable devices,” Mupita said. Memory chips are essential for smartphones and other electronics, but manufacturers now face fierce competition from companies building AI infrastructure. This presents a major challenge for Africa, where device affordability remains the biggest barrier to internet access. “The really big difficulty today is the cost of devices,” Mupita said, noting that the challenge has moved beyond network coverage and data prices. Despite heavy investments in network expansion, millions remain excluded from digital services because they cannot afford internet-enabled devices. For instance, MTN has over 90 million subscribers in Nigeria, but only about two-thirds actively use internet and data services. More work is still needed to bridge that gap.
Governments can help by reviewing import duties and taxes that inflate smartphone costs. Some African countries are already exploring measures to make devices more affordable, recognising that wider access could boost productivity and economic growth. Telecoms operators also have a role to play through device financing and by aggregating demand to encourage manufacturers to supply affordable devices. Expanding access will require collective action by operators, governments, financial institutions and device manufacturers. For Nigeria, addressing device affordability is essential to ensuring that growing digital infrastructure translates into real access to online services, digital education, AI and economic opportunities. The challenge is not simply about selling more phones, but ensuring more people can participate in the digital economy.
