$40 Smartphones Could Bring Millions Online as New Initiative Targets Africa
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A global effort led by GSMA aims to bring $40 smartphones to market in an attempt to close the digital divide and connect millions of people across Africa. The initiative involves major telecom operators including Airtel, MTN Group, Orange S.A., and Vodafone, and will pilot ultra-low-cost 4G devices in six countries: Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda. The goal is to make smartphones affordable enough to bring around 20 million more people online, especially in regions where internet coverage exists but device costs remain a barrier.
However, industry analysts warn that producing smartphones at such a low price may be difficult due to rising component costs and thin profit margins. According to research firms like Counterpoint Research and International Data Corporation, the average smartphone price in the Middle East and Africa was about $188 in late 2025, far above the targeted range. While ultra-cheap devices could help expand internet access, manufacturers and telecom partners will need to overcome challenges such as expensive memory components, taxes on smartphones in some countries, and limited margins before the initiative can scale globally.