GSMA Pushes for $40 Smartphones, But Cost Hurdles Remain

James Carter | Discover Headlines
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The GSMA is working with major African mobile operators and smartphone makers to pilot ultra-low-cost 4G devices in six African markets.

The initiative aims to bring an additional 20 million people online by making smartphones more affordable, with a target price point of $40.

Alix Jagueneau, the GSMA's head of external affairs, said the group has engaged with more than 15 smartphone manufacturers, with seven companies expressing interest in supporting the initiative.

The Funding Challenge

However, analysts say the industry may struggle to produce smartphones near the $40 price point under current component cost conditions, with rising memory costs adding urgency and complexity to the effort.

Ahmad Shehab, research analyst at Counterpoint Research, said devices at that price would likely come with extremely basic specifications and thin profit margins.

Market Context

The average selling price of smartphones in the Middle East and Africa stood at about $188 in the fourth quarter of 2025, highlighting the gap between current market prices and the targeted $40 level.

Attempts to bring ultra-low-cost smartphones to emerging markets have faced challenges before, including Google's Android One initiative, which struggled to achieve widespread adoption.

What's Next

The GSMA hopes initial proof-of-concept devices could be produced this year, with early consumer offerings potentially reaching markets by late 2026, but the group is working with operators to build an ongoing dialogue with governments to address import duties and taxes on entry-level smartphones.

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