At the Mobile World Congress in Barcelona, the lobbying group of the Mobile World Congress (GSMA) said that they are cooperating with major African mobile network operators - including Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange and Vodafone - and smartphone manufacturers to pilot ultra-cheap 4G devices in six African markets: Democratic Republic of Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda, with the aim of making smartphones more accessible and helping 20 million more people access the Internet.
Affordable smartphones are seen as the key to narrowing the digital divide in developing markets, where millions of people live in mobile broadband coverage but still do not have internet connection, often because connected devices are still too expensive.
Through the Handset Affordability Coalition, GSMA is cooperating with carriers and manufacturers to promote devices priced at around $40 to help narrow this gap.
This initiative is still in its early stages, with trade negotiations underway between mobile carriers and smartphone manufacturers to develop devices that meet the target price segment.
GSMA has not confirmed which manufacturer will produce these devices. Mr. Jagueneau, representative of GSMA's advocacy group, said that commercial negotiations with smartphone manufacturers are still ongoing. However, the group hopes that initial test devices may be produced this year, and the first consumer products may be launched in the market by the end of 2026.
Mr. Jagueneau said that no of the six countries identified to participate in the pilot program committed to reducing import taxes or taxes on cheap smartphones. He also added that the group is working with carriers to build a continuous dialogue with the government in the coming months.
Low profits and high component costs
Analysts believe that this industry may face difficulties in producing smartphones at a price of nearly $40 in the current component cost situation.
“Launching smartphones priced from $30 to $40 is possible in the past when memory costs were significantly lower,” said Ahmad Shehab, a research analyst at Counterpoint Research.
Shehab told TechCrunch that devices at that price often have extremely basic specifications and low profit margins, adding that finding sources of low-capacity memory components is also difficult because suppliers are increasingly prioritizing higher-capacity chips.
According to Counterpoint, the average selling price of smartphones in the Middle East and Africa in the fourth quarter of 2025 reached about 188 USD, showing the gap between the current market price and the target of 40 USD.
Although some brands have achieved an average selling price (ASP) below $40, this sales volume is still insignificant and almost non-existent in major global suppliers," Shehab said.
Efforts to bring ultra-low-cost smartphones to emerging markets faced many challenges before. In 2014, Google launched the Android One initiative to promote affordable smartphones in markets such as India, Pakistan, Bangladesh and Indonesia before expanding the program to Africa in 2015. However, the program struggled to achieve widespread popularity.
