Mobile Handsets In Nigeria

by Research&Markets
2006-07-25 00:00:00 | Viewed 2215 times

The mobile market has grown to 16 million subscribers in four years but still only covers 12.3% of the population of about 130 million. The report tells more about the growing mobile market of Nigeria by giving an in-depth analysis about the mobile handsets market in Nigeria. It looks specifically at the current state, future potential and latent opportunities based on current profiles and preferences of phone owners and providing a forecast of the Nigerian mobile handset market up to 2007, while revealing most sought after brands and handsets models as well as the underlying reasons for market demands.

Driven by stable liberalization and competition, companies are unable to assess the performance of their competitors with accuracy. If the point is driven further, it clearly shows that both investors and operators are finding it increasingly difficult not to be involved with Nigeria. Thus, dismissing the notion about Nigeria as a high risk market.

As with technologies elsewhere in Africa, the growth of mobiles appears in large part to have been driven by the comparatively young (18-34) and its users are predominantly (67%) though not exclusively male. Interestingly, younger women are more likely to have a phone and therefore usage will increase as existing users grow older. In a society where television and newspapers are a minority media, the mobile has become almost a form of media in itself with people using it to keep ahead of what is happening in their world.

The main barriers to mobile phone growth amongst non-users have been identified as insufficient income (41%) and high price of handsets (27%). This is in line with research by the global GSM Association that pinpointed the cost of handsets as the single biggest obstacle to affordability in emerging markets. It becomes imperative to work with mobile handset vendors to target cheap and affordable phones. Handset manufacturers (particularly Motorola) have pioneered an initial US$50 handset that over time as demand increases will fall to US$40.

This sounds promising, but it would remain a challenge where nearly 80% of distribution in Nigeria is in the so-called "grey market" where dealers seek to maximize price reductions. Estimates given, provides a distinction that for every appointed dealer there are about 30 grey market dealers. Though such a disordered market structure often makes it frustrating for manufacturers in this field to increase sales, it does ensure that competition brings down prices. Doubtless many of the phones sold are either secondhand or refurbished and their sellers have mostly avoided paying import tariffs.

The Mobile Handset Report is your invaluable source for the latest market intelligence in order to improve your competitive depth and overall business outcomes.

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