Revealed in Counterpoint’s latest report, this is the first decline after a strong run in 2025, coming down mainly to higher device prices, supply pressure in entry-level phones, and instability in parts of the Middle East.

The toughest hit came from the lowest price segment where phones priced between $50 and $99 fell 41% compared to last year.

Many of these devices were harder to find in stores, especially in parts of Africa and the Middle East where supply chains have been strained.

Prices rose across the board due to a global memory shortage affecting DRAM and NAND chips. That pushed up costs of production and fed directly into retail prices.

At the same time, conflict in parts of the Middle East raised shipping costs and disrupted normal distribution routes. Both factors combined to weaken demand in price-sensitive markets.

Samsung was the largest player in the region and grew 19% year on year. The company held steady because it had stronger inventory levels and a wider mix of premium devices. Its newer high-end models also supported sales, helping it avoid the worst of the supply pressure affecting other brands.

Apple also recorded strong growth, with iPhone shipments up 33% year on year. Its share in the region rose to 8%, up from 6% a year earlier. Demand was sustained in premium markets, particularly in the Gulf states where higher-income consumers continued to upgrade.

HONOR posted the most striking increase, growing 154% year on year. The jump reveals a low base last year, but also stronger positioning in the premium mid-range segment, especially in GCC markets where demand for higher-spec devices has been stable.

In contrast, Transsion and Xiaomi faced tougher conditions. Both brands had limited product availability in parts of the Middle East. In some retail channels, stock shortages were visible, which directly affected sales volumes.

Despite the overall decline, the MEA region showed stronger movement towards higher-end devices, with 5G smartphone shipments rising 42% year on year, and AI-capable smartphones also increased by 64%. Although most of that growth stayed concentrated in devices priced above $400.

This has not offset the weakness in the entry-level segment. Demand in lower-income markets has reduced as fuel prices, logistics costs, and job cuts in parts of the Gulf affect spending power. Buyers are becoming more cautious, and upgrades are happening less frequently.

The outlook for the next quarter is weak. Analysts expect further pressure on shipments in Q2 2026, with fewer promotional periods and challenges in both supply chains and regional conditions.

Driven by a directive from the Nigerian Communications Commission (NCC) following a clean billing audit, the goal is to show users exactly how background app activities, automatic updates, and video streaming drain their balances as data consumption across the country skyrockets.

Operators have already started sending customers daily reports showing how much data they used the previous day.

An official at one of the telecom companies in Nigeria said the data depletion issue has become a major concern across the industry.

“An average subscriber believes their service provider steals their data once their data is exhausted before time or depletes faster than they expected, which is not true.

“Over the years, we have tried to enlighten the subscribers on factors that could lead to their data being depleted fast, which include smartphone functionality, among others.

“And now, we are looking at tools that could show the subscribers not just what they have used, but also how they have used it to further promote transparency,” the source said.

He added that operators are also stepping up public awareness campaigns to help subscribers understand why data may finish faster than expected.

The renewed drive for transparency comes as data usage across Nigeria gets more expensive.

Nigerians consumed more than four billion gigabytes of data in the first quarter of 2026, driven by heavy use of video streaming platforms, social media, fintech services and remote work tools.

That growth has also increased pressure on telecom infrastructure, with networks in many parts of the country now struggling during peak hours, leaving subscribers with slower internet speeds and unstable connections.

Many users often interpret those issues as abnormal data depletion.

Telecom operators are also dealing with worsening infrastructure problems. Industry data showed there were 19,384 fibre cuts in 2025, while another 5,934 incidents were recorded in the first quarter of 2026 alone.

At the same time, only about 25% of planned 4G expansion projects for 2026 have been completed, leaving networks overstretched as internet demand grows.

In December 2024, the NCC said it carried out a billing audit across major mobile networks after repeated complaints from subscribers. According to the regulator, the audit did not uncover any major issue linked to unfair data deductions.

The Executive Vice Chairman of the NCC, Dr Aminu Maida, said the exercise was completed in the third quarter of 2024 using independent auditors.

“We had a hypothesis that it isn’t true that there is a data depletion issue in the industry. It could be perception.

“So the first thing we did was that we immediately conducted a billing audit on the systems of the major MNOs, using reputable auditors. That exercise was completed in Q3 of this year (2024) and surprisingly, we didn’t find any major issues,” he said.

The NCC has repeatedly warned that several smartphone features and apps consume data without users actively using them. According to the commission, background app activity, cloud syncing, automatic updates and location services are some of the biggest causes of unexpected data usage.

The regulator advised subscribers to monitor their usage regularly, turn off background data access for selected apps and disable automatic updates where necessary.

It also recommended using Wi-Fi whenever possible and installing ad blockers to reduce unwanted data consumption from online advertisements.

Meanwhile, Nigeria is reviewing its 26-year-old telecom policy as the government looks to address growing pressure on the sector.

Proposed reforms include stronger consumer protection rules, new tariff structures, wider 5G deployment and tougher measures to protect telecom infrastructure from vandalism and fibre cuts.

Authorities say the reforms are aimed at improving digital access, strengthening cybersecurity and encouraging long-term investment in the country’s telecom industry, ultimately reducing data depletion across Nigeria.

Documents filed with the U.S. Securities and Exchange Commission show that IHS shareholders will vote on the proposed deal at an extraordinary general meeting in London later this year. 

If approved, MTN will acquire all remaining shares in IHS for $8.50 per share in cash and remove the company from the New York Stock Exchange.

The offer values IHS at an implied equity value of about $2.9 billion, excluding its Latin American operations. The price also represents a 9.7% premium to the company’s 30-day volume-weighted average share price as of February 4, 2026.

MTN plans to fund the transaction with about $1.1 billion from IHS’s existing balance sheet and another $1.1 billion from its own liquidity and debt facilities.

The deal already has support from shareholders controlling more than 40% of voting rights. MTN’s subsidiary, Mobile Telephone Networks Holdings, agreed to vote its 85.2 million shares in favour of the transaction. Those shares account for roughly 21.1% of IHS voting power.

Another major investor, Oranje-Nassau Développement, linked to French investment group Wendel, also committed its support. The firm controls about 63 million shares, representing nearly 19.6% of voting rights.

MTN investor documents indicate that shareholders representing around 46% of voting power are already aligned behind the transaction ahead of the meeting.

IHS’s board has also endorsed the acquisition. “The board unanimously authorised and approved the execution, delivery and performance of the merger agreement,” the company said in the filing.

Once completed, the transaction will end IHS’s run as a publicly traded company, just five years after its New York listing in 2021. The company had positioned itself as an independent infrastructure provider serving several mobile operators across Africa, the Middle East and Latin America.

Still, MTN has been one of its biggest customers and shareholders for years.

The acquisition will also give MTN direct ownership of a large part of the infrastructure supporting its mobile operations across Africa. IHS operates about 28,700 towers across its markets, including roughly 15,942 towers in Nigeria, where it holds an estimated 41 per cent market share.

MTN operates in all of IHS’s African markets, including Nigeria, South Africa, Cameroon, Côte d’Ivoire and Zambia.

Telecom operators across Africa have moved to take greater control of critical infrastructure as inflation, currency pressure and network costs squeeze margins.

In 2024, Airtel launched Airtel Africa Fibre to manage its 70,000-kilometre fibre network directly. Safaricom followed in 2025 by taking control of power systems at its telecom sites and deploying its own solar infrastructure instead of relying fully on tower-management contractors.

The IHS deal is expected to reduce dependence on third-party tower companies for MTN, while improving network management and foreign exchange risk control across key markets.

The filing also showed that employee stock awards under IHS’s incentive plans will be converted into cash payments based on the $8.50 offer price if the transaction goes through.

The merger still requires approval from at least two-thirds of votes cast at the shareholder meeting before it can proceed.

The result from Brand Finance shows a mix of scale, steady demand for digital services, and steady investment across its operations.

MTN leads with a brand value of about R50.9 billion and its uniqueness isn’t limited to its size, but how it earns across different markets and services.

The group operates in about 16 countries and serves more than 300 million users, providing a wide and stable base of revenue across Africa.

Mobile data is the main growth driver. More users now depend on data for streaming, communication, and everyday digital activity. This supports recurring income and reduces reliance on traditional voice services.

With demand for connectivity growing, MTN benefits directly from increased data usage across its markets.

Fintech services are also a big part of its growth. MTN has expanded mobile money and digital payment platforms in several countries. These services allow users to transfer funds, make payments, and access financial tools through mobile devices.

The expansion adds new revenue streams and strengthens customer engagement within its ecosystem.

Again, infrastructure investment, where MTN continues to expand and upgrade its network to improve coverage and service quality. These improvements help meet rising demand and maintain user trust in its services.

Strong network performance also helps reduce customer loss to competitors.

The group’s long-term brand visibility has long contributed to its position, with MTN maintaining consistent public presence through partnerships and sponsorships over the years, including its long-running association with national rugby. This visibility has supported brand recognition and trust among users.

Looking at the market environment which has also improved, South Africa’s top brands recorded stronger performance in 2026, supported by improved energy supply, easing inflation, and the country’s removal from the Financial Action Task Force grey list in late 2025.

Structural reforms and a sovereign credit rating upgrade by S&P Global around the same period also contributed to renewed investor confidence.

Jeremy Sampson, chairman of Brand Finance Africa, said: “As South Africa’s economic environment stabilises, the country’s leading brands are demonstrating strong resilience and growth. Sectors such as banking, retail, and telecoms continue to anchor the ranking.

“Strong gains in insurance and beers highlight how sustained brand investment and operational performance can translate into significant brand value growth. Strong brands will continue to play an important role in strengthening investor confidence and supporting South Africa’s long-term economic competitiveness.”

Other brands that joined MTN on the 2026 list included Vodacom Group, which ranks second with a brand value of about R47.9 billion, supported by expansion into markets such as Egypt and Ethiopia and increased use of digital financial services.

Standard Bank Group holds third place at roughly R45 billion, driven by strong corporate banking performance and ongoing investment in digital platforms.

First National Bank and Absa Group benefited from high customer adoption of digital banking services. In retail, Checkers was the strongest brand, supported by high consumer trust, expansion of its delivery services, and consistent customer traffic.

PEP recorded the fastest growth among the top brands, rising 76% to R5.8 billion. Its performance showed expansion across its retail network and increased use of digital payments and financial services.

Five new entrants also joined the rankings in 2026, including Savanna, SANRAL, Valterra Platinum, Oros, and the Johannesburg Stock Exchange.

Taken together, MTN’s scale, data-driven revenue, fintech expansion, and steady investment in infrastructure all support its sustained position, even as competition strengthens across telecoms, banking, and retail sectors.

At the maiden Rural Connectivity Summit organised by Business Metrics in Lagos, the President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Izuagbe Emoekpere, said: “We need to move away from talk shops into actions.”

Speaking under the theme “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” Emoekpere said the industry must stop recycling discussions and start building practical, context-specific solutions that meet the real needs of rural Nigerians. 

“We are all part of the talk shop industry, so to speak, as advocates, we go around speaking. But what impact are we having? What impact are we making?” he asked.

ATCON president noted that despite the official claim of about 200 million active telecom subscribers, many of those figures are duplicates. “They are not real people,” he stressed, noting the example of modern iPhones that can host up to eight eSIMs without a physical SIM slot. 

“If you are counting that as eight subscribers, can you see the irony in that, in this, our data? Let us connect real people.”

Away from telecom subscribers, the ATCON president also challenged engineers and service providers to rethink their design approach, saying too many solutions are borrowed from other regions without adaptation. “We just borrow technology. We are very lazy. We borrow technology,” he said. 

“You are supposed to go to an OEM and say, ‘This is a problem I want to solve.’ Design the system to suit that problem.”

According to him, many of Nigeria’s rural challenges, from banking exclusion to market access for farmers, could be solved with basic, fit-for-purpose digital tools. “The lowest of the lowest hanging fruit in the rural communities is that they are unbanked,” he said. 

“If you try and adopt the POS system, for example, and make it a rural solution that allows POS to operate in rural communities, you have already brought people into the banking sector.”

He gave another example: farmers in remote villages selling produce at unfairly low prices because they lack access to real-time market data. “If I tell the village that, I can give you real-time prices of what you produce, what has been sold. Pay me 10 Naira for that information, for example, so that when the middle man comes to me and says, ‘I’m paying,’ the guy says, ‘No, I’ve received information that pineapple today in Lagos is 3,000 Naira.’ Even if you are transporting it, I cannot collect less than 500 Naira,” he said.

Emoekpere emphasised that the problem is not the absence of markets in rural Nigeria, but the industry’s failure to understand and serve that market correctly. “That there is no market in the rural community is wrong. The issue is our approach to that market,” he said.

He urged organisers and participants at the summit to ensure concrete outcomes beyond conversations. “At the end of the day, we are looking at action, actionable points and even identifying potential drivers, say, ‘Mr A is going to do this, Mr B is going to do that.’”

Connecting rural Nigeria requires empathy, innovation, and accountability, far beyond technology deployment. “We must connect real people,” he concluded. 

At a breakfast session hosted by the Lagos Business School, Pan-Atlantic University on June 5, 2024, leading voices in the private sector gathered to discuss the theme “Telecom Sector: The Fulcrum for Economic Dynamism in Nigeria.”

Keynote speaker Bismarck Rewane, CEO of Financial Derivatives Company, emphasized the telecom sector’s critical role in driving economic growth, innovation, and productivity across various industries.

Rewane, in his presentation titled, “Nigerian Economy on the Brink, Adapt or Collapse?” highlighted the sector’s challenges, including rising inflation, high operating costs, limited access to foreign exchange, regulatory burdens, multiple taxations, and state and local government extortion.

He stressed that these challenges are threatening the sector’s growth and development, citing MTN’s reported loss in 2023 financial year.

The expert’s comments align with telecom operators’ push for cost-reflective tariffs, which they deem necessary due to adverse economic headwinds.

Rewane emphasized that the current situation is having a detrimental impact on the sector’s growth and development, warning that the revenue potential from telecoms may start falling, leading to a ripple effect on other sectors.

“Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow”, he added.

Other notable speakers, including Prof. Ali Bongo, echoed Rewane’s sentiments, stressing the need for government support and deregulation to ensure the sector’s survival.

They highlighted the sector’s growth potential, citing its 8% outperformance of GDP growth rate between 2019 and 2023.

The event examined the telecom sector’s critical role in Nigeria’s economic growth and development, with stakeholders urging the government to provide support and create an enabling environment for the sector’s growth.

As the telecom sector continues to face numerous challenges, experts warn that its decline could have far-reaching consequences for Nigeria’s economic dynamism.