Efforts to make smartphones more affordable in developing markets are gaining momentum as telecom operators, device makers and industry groups work together to reduce device costs. The initiative focuses on bringing smartphones priced around $40 to market, a level seen as critical to connecting millions of people who still remain offline despite having access to mobile networks.
At the centre of the effort is GSMA, which announced during Mobile World Congress in Barcelona that it is collaborating with major mobile operators including Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange and Vodafone. The project will test ultra-low-cost 4G smartphones in 6 African markets — Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda — with the goal of bringing 20 million more people online.
The initiative is part of the Handset Affordability Coalition, which aims to close the digital divide in regions where people live within mobile broadband coverage but cannot afford smartphones. Alix Jagueneau said the project is still in its early phase, with commercial negotiations ongoing between operators and device makers. The organization has contacted more than 15 smartphone manufacturers and 7 companies have expressed interest. “The $30–$40 price point is an ambition, based on GSMA intelligence research on affordability and is to be understood as a best effort intent,” Jagueneau said. However, she noted that rising memory costs are making the challenge more complex.
The final device price will depend on several factors, including financing models and tax policies. Import duties and taxes — sometimes applied because smartphones are classified as luxury products — can increase handset prices by as much as 30% in some markets. Jagueneau said development banks and financial institutions could help reduce the risk for mobile operators investing in the initiative. The GSMA hopes prototype devices could be produced this year, with early consumer availability expected by late 2026. So far, none of the 6 pilot countries has committed to lowering import duties, though discussions with governments are ongoing.
Industry analysts warn that producing smartphones at the $30–$40 level could be difficult under current market conditions. Ahmad Shehab said such pricing might have been easier when memory costs were lower, adding that devices in this range would likely have very basic specifications and thin profit margins. The average smartphone selling price in the Middle East and Africa reached about $188 in the 4th quarter of 2025, according to Counterpoint Research, highlighting the large gap between the target price and current market levels.
Meanwhile, feature phones priced between $10 and $15 remain dominant in African markets, accounting for 39.5% of all mobile phones shipped in 2025, according to IDC. Previous attempts to create ultra-affordable smartphones have struggled. In 2014, Google launched the Android One program to promote affordable devices in markets such as India, Pakistan, Bangladesh and Indonesia, before expanding to Africa in 2015, but it failed to achieve large-scale adoption.
Jagueneau emphasized that success will depend on cooperation between telecom operators, manufacturers and governments. She said improving access to affordable smartphones remains essential to expanding digital connectivity and bringing more people online worldwide.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
