Telecom
Smart Phones Prices to Crash in 2017- Informa
A new study from Informa Telecoms & Media predicts that the smartphone market will begin to diverge and sales will become dominated by two poles – the low-end devices (priced below $150) and the high-end devices (priced above $250).
The expensive smartphones will find their market share shrinking from 85% of total smartphones sold in 2011 to 33% in 2017.
In contrast, the low-end smartphones will gain enormous amount of market share over the years to account for just over half (52%) of the smartphones sold in 2017.
The smartphone market is undergoing dramatic changes whereby demand will be increasingly polarized between expensive and heavily-subsidized handsets on the one hand and affordable devices targeting the emerging markets and skeptical users in the developed world on the other hand.
As a result, price erosion is looming as competition becomes more intense.
The average smartphone price will drop from $188 in 2011 to $152 in 2017 as a result of it balancing the huge demand for entry-level smartphones in emerging markets and the demand for “super-smartphones” in developed markets.
The devices’ average gross margin is expected to remain flat – in the range of 20 -25%. This is because vendors will increasingly be under pressure to absorb the cost of innovation while keeping up with price competition.
To remain profitable, a number of vendors will have to continue to reduce their operational costs and some will struggle to maintain profitability.
“As the market develops, the supply chain will increasingly be divided between two camps – the innovators who will continue to introduce new features and high-performance components to the market place and followers who will take this innovation to the mass market in later years,” commented Malik Saadi, principal analyst at Informa Telecoms & Media.
These changes will push some established manufacturers to reposition themselves in the new environment and come out with more effective handset-pricing strategies.
Only a few manufacturers will have the ability to operate right across the market, the great majority will have to focus on particular segments to reduce cost and maximize margins.
A number of established vendors, including Nokia, RIM, LG, HTC, Motorola and Sony, will find it hard to adapt to the new smartphone landscape as this could take them away from their core business, servicing the core smartphone market.
These players will have to make a strategic decision to either fight in the high-end segment, a market strongly monopolized by Samsung and Apple, or alternatively face stiff competition by assemblers and Chinese ODMs in the low-end segment of the market.
“In any case, these players will have to align their pricing strategy with market demand if they want to survive. The new environment will make it hard for all vendors to achieve a balance between generating scale and maintaining decent margins,” concluded Saadi.
Association of Licensed Telecom Operators of Nigeria (ALTON), official industry umbrella body and pressure group for major mobile network operators in the country, has faulted claims that foreign direct investments (FDIs) into the sector slumped significantly in quarter one (Q1).
Gbenga Adebayo, Chairman, ALTON
ALTON, said that with N2.13 trillion spent in 2025 on network upgrades and expansion that they would invest an additional N1.86 trillion on network expansion this year.
The body was reacting to the claim by the National Bureau of Statistics (NBS) that FDIs into the sector slumped significantly in quarter one.
The telcos commended the Federal Government for its continued support of the industry, while calling for a more comprehensive framework to track and report investments coming into the sector.
The operators highlighted the importance of accurate data in shaping investor perceptions and guiding policy decisions.
The association noted that while the NBS recently released its Q1 Capital Importation Report, the figures presented do not fully capture the scale of capital deployment within Nigeria’s telecoms industry.
“This disparity between reported foreign capital inflows and actual infrastructure investment highlights a gap in how sectoral capital deployment is currently measured and reported,” the statement read.
ALTON, in the statement, signed by Gbenga Adebayo and Damian Udeh, chairman and publicity secretary, respectively, expressed appreciation to the Federal Government for approving a strategic 50 per cent tariff increase in 2025, describing it as a pivotal intervention that rescued the industry from financial distress.
According to the association, the tariff adjustment restored operational viability, closed critical revenue gaps and enabled operators to reinvest in infrastructure and service quality.
The association emphasised that the policy intervention transformed the sector from a struggling model into a sustainable, growth-focused industry.
“The timely investment enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” ALTON stated.
The statement revealed that telecom operators, tower companies, and other players in the sector recorded a total capital expenditure of N2.13 trillion in 2025. For 2026, planned capital expenditure stands at N1.86 trillion, with funds directed towards network infrastructure expansion, technology upgrades, and operational investments critical to maintaining service quality and coverage.
These commitments, ALTON stressed, are fundamental to advancing Nigeria’s digital economy objectives and improving services for millions of subscribers nationwide.
While the NBS report indicated a sharp decline in foreign capital importation into the telecom sector, from $80.78 million in 2025 to just $7.24 million in Q1 2026, ALTON argued that this metric only reflected a portion of the actual investment activity.
The association explained that much of the sector’s capital deployment now comes from domestic sources, including reinvested operational earnings.
These financial mechanisms, ALTON noted, are not fully reflected in conventional foreign capital importation metrics, thereby painting an incomplete picture of the industry’s health.
To address this reporting gap, ALTON proposed a collaborative engagement among the Nigerian Communications Commission (NCC), the NBS, and the Central Bank of Nigeria (CBN).
The goal, according to the association, is to develop a more inclusive and transparent investment-tracking framework that accurately reflects both foreign and domestic capital flows.
ALTON reassured the Nigerian public that telecom operators remain committed to continuous investment in network expansion, modernisation, resilience and service quality improvements.
The association pledged to work closely with regulators and government institutions to ensure that the sector’s contributions to national development are comprehensively documented and appropriately recognised.
With sustained collaboration and government support, ALTON said Nigerians can expect uninterrupted access to digital services that drive economic growth, innovation, financial inclusion, and overall national development.
Princess Emiko
The regulatory and digital infrastructure pillars of Nigeria’s telecommunications ecosystem, led by the Nigerian Communications Commission (NCC), Digital Realty, and IHS Nigeria, have rallied robust support for the upcoming 2026 Nigeria DigitalSENSE Forum (NDSF) on Internet Governance for Development (IG4D) and its prestigious industry awards.
The annual high-level forum is scheduled to hold this Thursday, June 11, 2026, at the prestigious Banquet Hall, Welcome Centre Hotels, Lagos, anchoring its deliberations on the crucial theme: “Sustaining WSIS Vision with Multistakeholder Synergy in Nigeria.”
The Executive Vice Chairman and CEO of the NCC, Dr. Aminu Maida, is set to deliver the Keynote Address, highlighting the regulatory framework required to preserve the World Summit on the Information Society (WSIS) vision through inclusive, multi-stakeholder partnerships.
Joining the regulatory commission in driving this momentum is IHS Nigeria, the nation’s premier digital infrastructure champion boasting a footprint of over 16,000 telecom towers and 15,000km of fiber optic cables across the country. Alongside data center colocation leader Digital Realty, these organizations are heavily backing the forum as part of their commitment to promoting critical national infrastructure and securing Nigeria’s digital possibilities.
Speaking ahead of the event in Lagos, Ogbuefi Remmy Nweke, the Editor-in-Chief of host media organization ITREALMS Media Group, commended the immense institutional support flowing from the public and private sectors.
“Achieving sustainable internet governance and digital trust requires an intentional alignment of regulation and infrastructure,” Nweke remarked. “The active collaboration of the NCC, IHS Nigeria, and Digital Realty ensures that the 2026 forum will move beyond mere dialogue to produce clear, actionable policy recommendations for our digital economy.”
The event will be presided over by Dr. Olusola Teniola (hon), Director, Strategic Business Initiatives, ipNX Nigeria and former President, Association of Telecommunications Companies of Nigeria (ATCON), who will deliver the Chairman’s Opening Speech on the 2026 NDSF blueprint.
Earlier, leading telecommunications, technology, and internet governance stakeholders have thrown their weight behind the 17th milestone edition of the annual Nigeria DigitalSENSE Forum (NDSF) on Internet Governance for Development (IG4D), including ICT infrastructure leader MTN Nigeria; the Association of Licensed Telecoms Operators of Nigeria (ALTON); premier software and DNS infrastructure firm Upperlink Limited; and the Nigeria Internet Registration Association (NiRA), managers of the .NG country code Top Level Domain name.
Media & Event Contact: The Secretariat Nigeria DigitalSENSE Forum (NDSF) / ITREALMS Media Group Banquet Hall, Welcome Centre Hotels, Lagos Website: www.itrealms.com.ng
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