A push by a coalition of telecom operators, device makers, and industry groups to bring forty-dollar smartphones to market is gathering momentum. This price point is seen as key to getting tens of millions more people online. However, questions remain over whether manufacturers can produce such ultra-low-cost devices at scale.
This week at Mobile World Congress in Barcelona, the advocacy group GSMA said it is working with major African mobile operators and smartphone makers to pilot ultra-low-cost 4G devices in six African markets. The operators include Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange, and Vodafone. The pilot countries are the Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda. The goal is to make smartphones more affordable and bring an additional twenty million people online.
Affordable smartphones are widely seen as key to narrowing the digital divide in developing markets. Millions of people in these regions live within mobile broadband coverage but remain offline, often because internet-enabled devices are too expensive. Through its Handset Affordability Coalition, the GSMA is working with operators and manufacturers to promote devices priced around forty dollars to help close that gap.
The initiative remains in early stages, with commercial negotiations underway between mobile operators and smartphone manufacturers to develop devices meeting the targeted price range. The GSMA has engaged with more than fifteen smartphone manufacturers as part of the effort, with seven companies expressing interest in supporting the initiative.
The forty-dollar price point is an ambition based on GSMA research on affordability and is understood as a best-effort intent. Rising memory costs are adding urgency and complexity to the effort. The final price of such devices will depend on a combination of factors, including financing schemes and tax policies.
Development banks, donors, and other financial institutions could help reduce risks for mobile operators investing in the devices. At the same time, import duties and taxes on smartphones, which are sometimes treated as luxury items, can add as much as thirty percent to handset prices in some markets.
The GSMA has not confirmed which manufacturers will produce the devices, as commercial discussions are still ongoing. However, the group hopes initial proof-of-concept devices could be produced this year, with early consumer offerings potentially reaching markets by late 2026.
None of the six countries identified for the pilot program has yet committed to reducing import duties or taxes on entry-level smartphones. The group is working with operators to build an ongoing dialogue with governments in the coming months. The GSMA believes there is an urgency for the public sector to address this part of the equation for digital inclusion. The group welcomed South Africa’s removal last year of a luxury excise duty on some smartphones, saying more countries should take similar steps.
Analysts say the industry may struggle to produce smartphones near the forty-dollar price point under current component cost conditions. Pushing smartphones priced in that range could have been historically feasible when memory costs were significantly lower. Devices at that price would likely come with extremely basic specifications and thin profit margins. Securing low-capacity memory components can also be difficult as suppliers increasingly prioritize higher-capacity chips.
The average selling price of smartphones in the Middle East and Africa stood at about one hundred and eighty-eight dollars in the fourth quarter of 2025. This highlights the gap between current market prices and the targeted forty-dollar level. Although a few brands have achieved price levels below forty dollars, these sales volumes remain negligible and are largely absent from major global vendors.
Attempts to bring ultra-low-cost smartphones to emerging markets have faced challenges before. In 2014, Google launched the Android One initiative to promote affordable smartphones in several markets before expanding the program to Africa in 2015. However, it struggled to achieve widespread adoption. Google continued the program in some markets for several years, but it never became a dominant platform for entry-level smartphones.
This new effort would require coordinated action across operators, manufacturers, and governments. Improving access to affordable smartphones remains critical to bringing more people online.