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The Global System for Mobile Communications Association (GSMA) has warned that rising smartphone component costs could threaten digital inclusion as internet-enabled devices become less affordable in emerging markets, including Nigeria.
The association raised the concern in its State of Mobile Internet Connectivity Report 2026, released on Wednesday, saying handset affordability remained the biggest barrier to mobile internet adoption across surveyed low- and middle-income countries.
GSMA said more than 3.4 billion people globally still do not use mobile internet, with more than 90% of them living in areas covered by mobile broadband networks.
What GSMA is saying
GSMA said the poorest 20% of people in low- and middle-income countries spent an average of 44% of their monthly income on entry-level smartphones, while that share rises to 76% in Sub-Saharan Africa.
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The association said smartphone affordability is coming under further pressure from rising memory and chipset costs, driven by growing demand from artificial intelligence infrastructure and data centres.
- According to the report, memory prices more than doubled between the third quarter of 2025 and the first quarter of 2026, before rising by another 80% to 90% in the second quarter.
- The association said the increase was already feeding into retail prices and threatening the market for smartphones priced below $100.
- GSMA warned that emerging markets could be particularly affected because lower-income consumers depend heavily on affordable entry-level devices to access mobile internet.
- GSMA Director-General Vivek Badrinath said the benefits of artificial intelligence would remain limited for people who cannot afford to get online.
- “AI is meaningless if people cannot get online in the first place,” Badrinath said.
He said the digital divide was increasingly becoming a divide between people who could afford to participate in the digital economy and those who could not.
- “Unless we protect the affordability of entry-level smartphones, billions risk exclusion from the next generation of digital services,” he said.
Badrinath called for coordinated action among policymakers, mobile operators, device manufacturers and component suppliers, including support for affordable components, device reuse, lower taxation and improved distribution systems.
He warned that failure to address device affordability could restrict access to education, healthcare, financial services and public services.
Get up to speed
The GSMA report comes as Nigeria continues to grapple with a significant gap between mobile network coverage and actual internet usage.
- In February 2025, Nairametrics reported that GSMA said about 60% of Nigerians with access to 4G coverage had never used mobile internet, with 42% of those non-users lacking an internet-enabled device.
- In March, Nairametrics reported that the GSMA Handset Affordability Coalition planned to pilot a ₦56,000 ($40) smartphone in Nigeria and five other African markets, as part of efforts to make internet-enabled devices more accessible.
The push came as Nigeria’s broadband penetration crossed 50% in late 2025, although high smartphone costs remained one of the barriers to wider internet access.
What you should know
Nigeria continues to face broader challenges around digital inclusion, with device affordability emerging as a key issue alongside connectivity and digital skills.
In September, Nairametrics reported that the Nigerian Communications Commission (NCC) identified high device and connectivity costs, inaccessible digital products and inadequate digital skills as major barriers to digital inclusion.
The commission said effective digital inclusion requires not only internet access but also appropriate devices, affordable broadband, relevant digital skills and accessible digital platforms.
