The prices of mobile phones in Africa is set to further crash as a phone manufacturing plant has been established in Uganda by Chinese Electronics Firm, ENGO.
The Jumia Mobile Report 2019 revealed that the average price of smartphones continues on a downward trajectory, as it dipped to US$ 95 in 2018, from US$ 117 in 2016, and US$ 216 in 2014. This development is due “to the influx of Asian brands specifically targeted for the Nigerian (African) market.”
With a Chinese firm like ENGO willing to manufacture and assemble phones in Africa as well as setting aside $15.5 million for the project in the next five years, the cost price of smartphones will definitely reduce especially if it favourable compete with the phones manufactured in China.
Commenting on the launch, Ares Chow Yu Qing, the Executive Director, ENGO Holdings Limited said: “We will do this step by step. We will use experienced Ethiopians until we have trained our own workforce. So we will start with 100,000 gadgets per month.
“For Computers, the target Computers is One Million a year – depending on demands. But we will bring more machines if the demands are high”
According to Chow, the firm’s trademark is known as Simi Mobile and will produce both cheap analogue and smartphone and the construction of the factory will last six months.