The artificial intelligence boom is making smartphones more expensive for Africans, according to the GSMA’s State of Mobile Internet Connectivity 2026 report, as analysed by The Condia. The reason is memory chips.
Why phones are getting dearer
Phones use two kinds of memory: RAM for running apps, and storage for photos and apps. AI data centres now buy huge quantities of high-performance memory, and manufacturers are moving away from the older chip types used in cheap phones. The result:
- Memory prices more than doubled between late 2025 and early 2026, then rose another 80 to 90% in the second quarter of 2026.
- Memory is now almost half the component cost of a low-end phone, and nearly 30% of a mid-range one.
- The Xiaomi Redmi A7, launched in April 2026 at about $110, costs 40% more than the Redmi A5 did a year earlier, with almost identical hardware.
- The GSMA says a single entry-level memory chip now costs more than the entire $40 4G phone it had been promoting with African operators.
Fewer phones for Africa
Global smartphone shipments are expected to fall 14% in 2026, the biggest annual drop in history. Most of the fall is in phones under $100. Sub-Saharan Africa alone could see 16 million fewer smartphones shipped, down more than a quarter on 2025. Shops are still selling stock bought at older prices, so the full rise has not yet reached buyers.
What it means for Nigeria
In rural Nigeria, 86% of people surveyed know about mobile internet, but only 51% own a phone that can use it. The gap is similar for women compared with men. Once people own an internet-capable phone, most go online, which is why the GSMA says the cost of the phone itself is the biggest barrier. In Sub-Saharan Africa, an entry-level phone costs about 76% of monthly income for the poorest fifth of people.
What could help
The GSMA recommends removing taxes and duties on entry-level phones, expanding pay-over-time phone financing, and improving digital skills and online safety. For buyers, it is worth comparing prices across sellers, considering certified refurbished phones, and checking that a phone is genuine before paying.
Source: The Condia, citing the GSMA State of Mobile Internet Connectivity 2026 report.
