KaiOS is positioned to grow significantly across Africa.
Why it matters? Market trends, as well as recent partnership and investments, suggests the smart feature phone operating system has an opportunity to capture hundreds of millions of first time internet users across the continent.
Growth Opportunities
- Global telecommunication companies continue to migrate users from 2G to 4G
- 4G feature phones are often used as companion/ secondary devices
- Feature phones cost less to make compared to smartphones
- At CES 2024, KaiOS discussed 5G smart feature phones “slated for an early 2025 rollout”
- KaiOS offers a higher Average Revenue Per User (ARPU) over 4G Real-Time Operating System (RTOS)
- KaiOS’ partnership with Trustonic to enable subsidy locking and device financing
- KaiOS partners with Konnect to expand financial inclusion and provide secure payment solutions among communities and individuals in Africa
- Finnfund invested $3.4 million so that, “KaiOS can expand into new markets in Sub-Saharan Africa”
By the numbers
- KaiOS has ~1,400 apps compared to ~2.6 million Android apps
- Feature phones grow in developed markets
- Feature phones comprised 2% of the US handset market in 2022
- The US could see an up to 5% increase in the next five years among Gen Z and Digital Detoxers
- Smartphone sales disappoint
- Reliance disappointedly sold ~2 million JioPhone Nexts, compared to projections of 50 million
- Africa’s smartphone market shrank 18% YoY in 2022
- Global smartphone shipments declined 12% YoY in 2022
- Focus on Africa
- More than half of all mobile phones sold in Africa in 2022 were features phones
- By 2025, it’s estimated that half of the African population will own a mobile device; more than 500 million will remain unconnected
Big risks
- Global chip shortages limit device shipments
- Competition from lower-cost 4G RTOS devices
- KaiOS lacks brand recognition and key apps, driving buyers to Google’s Android
- African telcos may favor partnerships with Google over KaiOS, as Jio did in 2021
- Unreliable electric grids across Africa may lead buyers to prefer 4G RTOS phones with longer standby times
- Expensive data rates prohibit new 4G subscriptions in Africa
- Several of Africa’s largest Telecom companies are partially or fully state-owned and may prefer platforms with tigher controls
Conclusion
If you are a KaiOS developer, or considering expansion to the platform, it’s important to design and architect your apps to effectively serve a global user base. If you want a partner to grow your presence in Africa on KaiOS, contact tha author from the About page.