This could be a revolution: They are working on a smartphone that will cost less than 40 euros

Coalition for Digital Inclusion

The initiative is led by the GSMA, the global association of mobile operators, which has brought together some of the biggest players on the African continent. The so-called G6 group includes telecommunication giants such as MTN, Orange, Vodacom, Airtel, Axian Telecom and Ethio Telecom. On the other hand, the production commitment was signed by 18 manufacturers, among them well-known names such as Huawei, Honor and ZTE. Their common goal is clear: to bridge the gap between network coverage and actual Internet use. As Marina Madale, MTN’s executive director of sustainability, pointed out, access to equipment has become a key barrier.

​- Coverage without devices is excluded. Nothing is possible without devices – said Madale at the Mobile World Congress in Barcelona, ​​where the initiative was officially presented.

It is estimated that in sub-Saharan Africa alone, a $40 phone could bring an additional 20 million people online. Devices are designed to meet minimum technical standards that ensure functionality. This includes 4G connectivity, a reasonable-sized screen, a long-lasting battery and enough memory to run basic applications, but also artificial intelligence tools adapted to local languages, such as models for Swahili.

A pilot project in the heart of Africa

The first devices should appear on the market by the end of 2026, and the initiative will be tested in six African countries: the Democratic Republic of Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda. These countries were selected as pilot markets where the success of the project and the reaction of users will be monitored. The idea is to offer more than just hardware. Operators plan to create affordable data packages to keep the total cost of ownership as low as possible. This includes not only the purchase price, but also and the costs of filling, repairing and replacing the device.

More than price: Obstacles on the way to market

Although the plan is ambitious, the road to its realization is full of obstacles. The biggest challenge comes from the global supply chain. Analysts from the International Data Corporation (IDC) warn of a “tsunami-like shock” in the memory chip market. Due to the huge demand for components that will drive generative artificial intelligence, memory prices (DRAM and NAND) have increased dramatically. This has led to predictions that the sub-$100 smartphone segment will become “permanently uneconomic”. According to some estimates, deliveries in this segment could fall by more than 30 percent moreć this year, which directly threatens the profitability of the production of devices for 40 euros.

Another big problem is taxes. In many African countries, smartphones are treated as luxury goods, which is why import duties and taxes are up to 40 percent of the final retail price. The GSMA is actively lobbying governments to abolish these levies on cheap devices, citing the example of South Africa, which abolished the luxury tax on phones below a certain price threshold. Finally, there is also the issue of user perception. Experiences from Kenya, where locally assembled smartphones were produced, showed that customers often prefer to opt for well-known international brands such as Xiaomi or Infiniti, even if they are a bit more expensive.