An African iPhone? There’s No App for That.

Why Steve Jobs should let Africans buy his new toy.

BY DAYO OLOPADE | JUNE 24, 2010

When I touched down in Lagos, Nigeria, this week, the first thing I did was buy a cell phone. The city's Saka Tinubu district hosts dozens of mobile vendors arrayed in small shops, piled high with all the major brands: Nokia, Motorola, Samsung. Among them is Belle-Vista Phone Warehouse, which styles itself as a "Blackberry Outlet." Young professionals stopped by after working hours to scoop up the Storm, the Curve, and other popular smartphones nestled in the display cases. Apple's iPhone -- ubiquitous in American cities, and about to become more so with the release of the product's much-anticipated version 4 today -- was nowhere to be seen.

The best-kept secret about Africa in the last decade is the continent's rapid and creative adoption of modern technology. African countries have for the most part leapfrogged the technologies of the late 20th century to adopt those of the early 21st en masse. There are now 10 times as many cell phones as land lines in sub-Saharan Africa, and since 2004, the region's year-over-year growth has been the highest in the world. When Nokia's billionth handset was sold in 2000, it was in Nigeria.

Africa is a multimillion-dollar mobile market, and plenty of the major technology companies, Western and otherwise, are there already. Multinational telecoms like MTN, Safaricom, and Zain are competing to cover a continent of 500 million mobile consumers, improving connectivity and dropping prices. Low-tech Chinese imports and no-contract, prepaid plans have made the technology easily accessible; Belle-Vista alone sells 500 phones a month. Nokia, which established its first African research center in Nairobi in 2008, has just unveiled a telephone that will allow consumers used to toggling between two or three devices to use multiple SIM cards in the same phone. BlackBerry has likewise responded to explosive demand by opening an office in Nigeria this year. Google, whose Android operating system is the strongest competitor to the iPhone, has had a presence on the continent since 2007 and now operates in 45 African countries, hiring and training African developers to convert its well-known suite of Web applications (Maps, News, Finance) for local use -- often over mobile devices.

These companies and their technologies are opening a line into the flattening world we've heard so much about, creating markets, enabling information access, and building relationships in ways that have changed poor countries from the bottom up. But it's hardly philanthropic work -- market leader Nokia's regional revenues were 1 billion euros in 2009, and Research In Motion, named Fortune's fastest-growing global firm in 2010, sold 1 million BlackBerries last year in South Africa alone.

So where is Apple?

The earlier-generation iPhones are, ostensibly, available on the continent -- Vodacom, a subsidiary of British Vodafone, signed a 10-country distribution deal with Apple in 2008 that included South Africa and Egypt, and the phones do work on local networks. Vodacom has also announced that it will distribute and service the iPhone4 in Africa in the near future. But for the vast majority of Africans, Apple effectively doesn't exist. The iTunes store's music offerings have never been available on the continent; African IP addresses are blocked. The iPhone goes for $1,000 at local retailers -- 10 times the current U.S. price for the same model, a big-enough markup that most iPhones on the continent are purchased  abroad instead -- and because of limited bandwidth and apps availability, owning one is "like having a Maserati in traffic," according to Tayo Oviosu, CEO of Pagatech, a mobile banking firm in Nigeria.

This is a shame, considering what even inexpensive, basic cell phones have done for Africa. In poor countries, cell-phone penetration has been linked to positive economic and developmental outcomes. A 2006 study of emerging markets suggests that a 10 percent increase in mobile penetration correlates with a 0.6 percentage point increase in economic growth rates. In Africa, the trend is lifting all boats: A fisherwoman without refrigeration in the Democratic Republic of the Congo can keep her catch on the line in the water, waiting for customers to call; selling access to a mobile phone in poor or rural areas of Uganda has become a viable business model. Professionals stuck in Johannesburg traffic make deals on their BlackBerries; demand for skilled labor in the information and communication technology sector has created 400,000 jobs in Nigeria since 2000.

ISSOUF SANOGO/AFP/Getty Images

 

Dayo Olopade is a Bernard Schwartz fellow at the New America Foundation.

DIMAO13

9:12 AM ET

June 25, 2010

on which infrastructure?

The article doesn't address the real problem, which is the operators infrastructures!
The Iphone in general and Iphone4 especially is a very high throughput device, there is no way that the existing african networks support that.
moreover the architecture of the existing networks are 1st or 2ng generation !!
In order to profit from the functionnalities of the Iphone we need an Edge network AT LEAST which is 2.75 !

 

MAJA007

12:49 PM ET

June 25, 2010

Not the reason

India doesnt has 3G even now (band auctioning was just finished) and has iPhone. Many countries in africa have 3G (South Africa, Morocco etc) but no iPhone.

 

XEONN

8:47 AM ET

June 29, 2010

Not the reason

MAJA007, please do not include South Africa with the rest of Africa. Geographically, SA is part of Africa however that is where it ends. South Africa has had the iPhone for over 2 years now & we are getting the iPhone 4 in early September.

 

RSAFSOZ

10:07 AM ET

June 27, 2010

haha

very stylish lol sikis and sex izle.

 

DANBIRCHALL

10:28 AM ET

June 29, 2010

Extrapolating from one country is invalid.

I haven't been to Nigeria - but I've been to Kenya and Uganda several times, and apparently the author hasn't.

Both Kenya and Uganda have authorized Apple resellers, and the iPhone 3G and/or 3GS have been available there for some time - at least one friend in Uganda has a 3GS, and when I visited this January there were outdoor advertising banners or billboards for the 3GS all over Kampala.

Yes, they are very expensive, since mobile providers typically offer prepaid service and don't subsidize the cost of the phone. And Chinese counterfeits are also widely available and heavily promoted.

I can't extrapolate from a country or two to the entire continent - but neither should the author.

 

GLADIATOR

11:29 AM ET

June 29, 2010

Infrastructure

Kenya has had 3G networks since 2007 and is now available in over 50% of the country. The IPhone 3G is also available but is expensize and not well marketed by the provider (Telkom-Orange). The Blackberry and Nokia NSeries which are offered by Safaricom and Zain are well supported and marketed leading to much better penetration. Basically Apple does not have a presence or strategy for the developing world which is what this article is trying to make an argument for while Nokia, Google etc do(Google and Nokia have their sizable sub-saharan(ex-SA) HQ in Nairobi, Kenya and decent presence in all the major markets while Apple has none. I believe the same argument can be made in developing Asia)

 

FRY TOOS

1:25 PM ET

June 29, 2010

wimax

I was amazed last year when I visited Cameroon, and they already have 4G on their networks in big cities. I used wimax in Bamenda on my laptop with very good speed. I spoke with a friend who works for Camtel and he told me Wimax is being rolled out to all the major cities in Cameroon and even to my small village of Ndop. I was shocked b/c in Kansas where I live sprint just introduced four g. Yes the infrastructure is there and good article. I believe the android operating system will eventually out rank all other systems b/c of its wide adaptability. Already ten major phone companies are making top android phones(sony Erickson, samsung, lg, motorolla, htc, dell, lenovo, etc.) b/c it is easy to add your own user interface without running into copyright issues. It is only a matter of time before it perfects itself. IN just one year it has upgraded to mature system. Froyo is very promising with flash. Once you have flash on a phone with a market of 80,000 apps and counting then you have a winner. When the whole world contribute to maturity of a system, it becomes easily adaptable. It is only a matter of time b/f someone in China figure a way to make really cheap android phones then we are talking about real competition.

 

MSTART12

3:41 AM ET

July 17, 2010

I can't imagine how could

I can't imagine how could they actually enjoy their iPhone if they can't install any applications in it. I'm a little bit surprise with their pricing as well. All vendors are adding too high mark-up with these iPhone. Well, it's part of business.martin start