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Comparatively, the cost of an iPhone 16 is lower in other top African economies. In South Africa, the phone would cost just over three months of minimum wage (USD 248.12/month), in Morocco nearly three months (USD 285.61/month), in Egypt a little over five months (USD 156.57/month), and in Algeria close to six months (USD 140.85/month), according to minimum wage data from a recent SBM Intelligence report.
The new launch of the iPhone, series-iPhone 16, forces statisticians to ferret out interesting data. That is to demonstrate how affordable iPhones are to ordinary Nigerians. A Nigerian minimum wage earner would need to save every penny of their salary for 18 months to afford the new iPhone 16.
Unveiled on Monday, the iPhone 16 starts at USD 799 (N1.26 million at N1,580.46/USD) for the 128GB model, while the iPhone 16 Plus is priced at USD 899 (N1.42 million). The iPhone 16 Pro costs USD 999 (N1.58 million), and the iPhone 16 Pro Max is USD 1,199 (N1.89 million).
Nigeria’s monthly minimum wage increased by 133.33% to USD 44.29 (N70,000) from N30,000 in July 2024. With this wage, the cheapest iPhone 16 model equals 18 months of minimum earnings for a worker in Africa’s biggest oil producer.
Comparatively, the cost of an iPhone 16 is lower in other top African economies. In South Africa, the phone would cost just over three months of minimum wage (USD 248.12/month), in Morocco nearly three months (USD 285.61/month), in Egypt a little over five months (USD 156.57/month), and in Algeria close to six months (USSD 140.85/month), according to minimum wage data from a recent SBM Intelligence report.
These disparities reflect Nigeria’s economic challenges, exacerbated by the unification of the foreign exchange market, which has led to a spike in phone prices. The naira has become one of the worst-performing globally, declining from N769.51/USD 1 in July 2023 to N1,580.46/USD 1 on September 9, 2024.
Ifeanyi Akubue, president of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN), noted, “Higher dollar prices mean higher phone prices.”
According to Canalys, a technology market analyst firm, iPhones account for less than per cent of Nigeria’s smartphone market. Chinese brands, especially Transsion, dominate the market.
Chinese brands, such as Transsion and Xiaomi, have become the dominant players in Nigeria’s smartphone market, especially in the entry-level segment. International Trade Center data shows that Nigeria has spent USD 3.82 billion on phone imports since 2019, with USD 2.83 billion (74.09 percent) coming from China.
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Many Nigerians opt for refurbished or second-hand phones. The used smartphone market grew by 9.5%in 2023, according to the International Data Corporation (IDC), and a study by Counterpoint Technology Market Research in 2021 noted a 10% increase in Nigerians purchasing second-hand iPhones and Samsungs.
