Smartphone companies in Kenya confront huge competition with entry of more Chinese players

Sometime back, when Kenyans wanted to buy a middle-end smartphone that has a larger screen, good camera, longer battery life and big storage capacity, they had to part with up to 20,000 shillings (USD 200).

Today, however, to get such a phone, one only needs between 80 dollars and 100 dollars, and Kenyans have Chinese phone makers to express gratitude. The entrance of Chinese brands in the east African nation's market has intensified competition not only amongst themselves but also with other brands making smartphones affordable.

Chinese brands in the Kenyan market include Tecno, Oppo, Xiaomi, Huawei, Lenovo and Infinix, all which have intensified rivalry amongst themselves by constantly unveiling new models as they seek to outclass each other with trendier gadgets. Recently, China's Huawei Technologies unveiled a new model of smartphone, Y6 2019, in the Kenyan market on March 12. Phone brands from other manufacturers outside China are Samsung, iPhone and Nokia, among others.

Until the coming of Chinese brands, starting with Huawei, the Kenyan market was dominated by the other brands whose prices were way above the reach of majority of Kenyans. But currently, the Chinese brands have dwarfed their peers as they drive prices of trendy smartphones in the east African nation to an all-time low. A survey in mobile phone shops in the capital Nairobi on Thursday indicated that Chinese phone makers have not only taken over the market, but they have also made Kenyans happy by enabling them access cellphones affordably.

At two newly opened phone shops on Moi Avenue, Tecno, Infinix, Huawei and Oppo stand out, with an attendant at Mobile House saying they are the fastest-moving thanks to their affordability. "Many young people are buying the Chinese brands because they are really affordable and offer much more," said Susan Nderitu, the attendant.

As other sellers of mobile phones across Kenya, Nderitu said due to the affordability, it is easier to sell the Chinese brands to customers than the others, a thing that keeps them in business. Bernard Mwaso of Edell IT Solution said Chinese gadgets have pushed prices of smartphones down not only in the Kenyan market but also globally.

"If you go to Asia and Europe, prices of smartphones have fallen significantly due to the Chinese brands like Huawei, Xiaomi and Tecno, which have taken over the market as they offer just as much as the other brands. Nokia and Samsung, among other brands, have had to offer relatively similar prices for them to compete," he said, Xinhua noted.

A survey by online store Jumia released last week notes that prices of mobile phones in Kenya have declined in the last four years following increased entry of gadgets from China. According to Jumia, the average amount of Kenyans are spending on smartphones has declined from 185 dollars in 2014 to 86 dollars currently. The report notes of a continuous decline in smartphone average prices as more Chinese brands join the Kenyan market, with the cost of the gadgets ceasing to be the major hindrance to the acquisition.

The online store, which sells Chinese brands among others, says gadgets from the Asian nation have made the smartphone market extremely competitive in Kenya and across Africa. "What is making Chinese brands popular besides the cost is that the phones offer all that what most smartphone users want, that is, larger screen size, better camera resolution, bigger storage capacity, 4G network and twin SIMs, among others," said Mwaso, as reported by Xinhua.

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