A Nigerian minimum wage earner would need to save every penny of their salary for 18 months to afford the new iPhone 16.

Unveiled on Monday, the iPhone 16 starts at $799 (N1.26 million at N1,580.46/$) for the 128GB model, while the iPhone 16 Plus is priced at $899 (N1.42 million). The iPhone 16 Pro costs $999 (N1.58 million), and the iPhone 16 Pro Max is $1,199 (N1.89 million).

Nigerias monthly minimum wage was increased by 133.33 percent to N70,000 ($44.29) from N30,000 in July 2024 after months of negotiations, though this fell short of labour union demands. With this wage, the cheapest iPhone 16 model equals 18 months of minimum earnings for a worker in Africas biggest oil producer.

Comparatively, the cost of an iPhone 16 is lower in other top African economies. In South Africa, the phone would cost just over three months of minimum wage ($248.12/month), in Morocco nearly three months ($285.61/month), in Egypt a little over five months ($156.57/month), and in Algeria close to six months ($140.85/month), according to minimum wage data from a recent SBM Intelligence report.

These disparities reflect Nigerias economic challenges, exacerbated by the unification of the foreign exchange market, which has led to a spike in phone prices. The naira has become one of the worst-performing globally, declining from N769.51/$1 in July 2023 to N1,580.46/$1 on September 9, 2024.

Ifeanyi Akubue, president of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN), noted, Higher dollar prices mean higher phone prices.

According to Canalys, a technology market analyst firm, iPhones account for less than percent of Nigerias smartphone market. Chinese brands, especially Transsion, dominate the market.

Adeolu Ogunbanjo, national president of the National Association of Telecoms Subscribers, remarked that most Nigerians will purchase only what they can afford given the tough economic climate. He noted that while these people may miss out on high-end phones like iPhones, they wont miss out on digital access. People need to get access, he said.

Chinese brands, such as Transsion and Xiaomi, have become the dominant players in Nigerias smartphone market, especially in the entry-level segment. International Trade Center data shows that Nigeria has spent $3.82 billion on phone imports since 2019, with $2.83 billion (74.09 percent) coming from China.

In response to the skyrocketing prices of new smartphones, many Nigerians are opting for refurbished or second-hand phones. The used smartphone market grew by 9.5 percent in 2023, according to the International Data Corporation (IDC), and a study by Counterpoint Technology Market Research in 2021 noted a 10 percent increase in Nigerians purchasing second-hand iPhones and Samsungs. (BusinessDay)