A coalition of telecom operators, smartphone manufacturers, and industry groups is working to introduce smartphones priced around $40 in an effort to expand internet access in developing markets, though questions remain about whether devices at that price can be produced at scale.
The initiative, led by the GSMA through its Handset Affordability Coalition, aims to help bring an additional 20 million people online by making smartphones more affordable in regions where many people live within mobile broadband coverage but remain offline.
The plan was discussed this week at Mobile World Congress in Barcelona.
Pilot Program Planned In Six African Countries
GSMA said it is collaborating with major mobile network operators in Africa, including Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange, and Vodafone.
The organizations plan to pilot ultra-low-cost 4G smartphones in six countries: the Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda.
The goal is to develop devices priced around $30 to $40, which advocates say could make internet-enabled devices accessible to millions more users.
“The $30–$40 price point is an ambition, based on GSMA intelligence research on affordability and is to be understood as a best effort intent,” said Alix Jagueneau, the GSMA’s head of external affairs.
The initiative remains in early stages, with negotiations underway between operators and smartphone manufacturers to determine whether devices can be produced within that price range.
GSMA said it has approached more than 15 smartphone manufacturers as part of the project. According to Jagueneau, seven companies have expressed interest in participating.
Costs And Policy Factors Affect Device Pricing
The final price of the devices will depend on multiple factors beyond manufacturing costs.
Jagueneau said financing arrangements, tax policies, and potential support from development banks or other financial institutions could influence the price of the smartphones.
Import duties and taxes are also a major factor. In some markets, smartphones are classified as luxury goods and taxed accordingly.
These duties can increase device prices by as much as 30%, according to Jagueneau.
None of the six countries selected for the pilot program has yet committed to reducing import duties on entry-level smartphones.
GSMA said it is working with telecom operators to begin discussions with governments in those markets.
“We believe there is an urgency for the public sector to address this part of the equation for digital inclusion purposes,” Jagueneau said.
She pointed to South Africa as an example. The country removed a 9% luxury excise duty last year on smartphones priced below 2,500 rand, about $150.
Manufacturing Challenges For Ultra-Low-Cost Devices
Analysts say producing smartphones near the $40 price point could prove difficult given current component costs.
Ahmad Shehab, a research analyst at Counterpoint Research, said the price range was more feasible in earlier years when memory components were cheaper.
“Pushing smartphones priced in the $30–$40 range could have been historically feasible when memory costs were significantly lower,” Shehab said.
He added that smartphones at that price would likely have very basic specifications and generate minimal profit margins for manufacturers.
Another challenge is sourcing low-capacity memory chips, which some suppliers produce less frequently as demand shifts toward higher-capacity components.
Large Gap Between Current Prices And Target
According to Counterpoint Research, the average selling price of smartphones in the Middle East and Africa reached about $188 during the fourth quarter of 2025.
That figure highlights the difference between current market prices and the $40 target proposed by the initiative.
“Although a few brands have achieved ASP levels below $40, these sales volumes remain negligible and are largely absent from major global vendors,” Shehab said.
Past Attempts At Low-Cost Smartphones
Efforts to expand access to ultra-low-cost smartphones have faced obstacles before.
In 2014, Google introduced the Android One program to promote affordable smartphones in emerging markets including India, Pakistan, Bangladesh, and Indonesia.
The initiative later expanded to Africa in 2015.
Despite those efforts, the program did not achieve widespread adoption.
Google continued supporting Android One devices in certain markets for several years, including Japan, but the platform never became dominant in the entry-level smartphone segment.
Jagueneau said the success of the current effort will depend on cooperation across telecom operators, smartphone manufacturers, financial institutions, and governments.
Featured image credits: Wikimedia Commons
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