Google Sets Sights On Ambitious Target Of 200mn Handsets In Africa

The Sub-Saharan African mobile market remains largely underdeveloped, according to BMI analysts. Our view is that the main barrier to adoption is the relatively high total cost of ownership (TCO) of even the most basic handsets. The other barrier is the equally fundamental problems of inadequate support infrastructure and operators' unwillingness to venture too far into unprofitable rural and impoverished areas. Internet search giant Google, however, plans to sell 200mn of its Android-powered handsets to the region. BMI believes that most Android handset makers would shy away from the low margin sub-US$50 devices that Google aims for. Therefore, the real opportunity lies at the feet of Africa's own handset manufacturers. But considerable investment risks remain and Google could struggle to realise its ambitions.

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