Push for $40 smartphones builds momentum, but still faces cost hurdles

A GSMA-led coalition of African mobile operators and smartphone manufacturers is working to pilot $40 4G smartphones in six African countries — DRC, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda — aiming to bring 20 million more people online. The initiative faces significant hurdles: rising memory component costs make the price point difficult to achieve, import duties can add up to 30% to handset prices, and no pilot country has yet committed to tax reductions. Analysts note that while a handful of brands have sold phones below $40, volumes are negligible. The GSMA hopes proof-of-concept devices could emerge in 2025, with consumer availability potentially by late 2026. The effort echoes Google's Android One initiative, which struggled to gain traction in similar markets.