MTN says phone prices won’t derail investment plans

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MTN’s Ralph Mupita says high device costs will not halt investment; the 80% increase he cited referred to memory prices, not phones overall.

MTN Group chief executive Ralph Mupita says rising smartphone costs will not stop the company’s investment plans, according to

Ralph Mupita with the MTN MIP-5 Fellows in Lagos
Ralph Mupita with the MTN MIP-5 Fellows in Lagos

. He made the comments during a meeting with journalists and MTN Media Innovation Programme fellows in Lagos. His remarks come as a shortage of memory chips raises costs for phone makers and threatens access to internet-enabled devices. He said the challenge must be addressed alongside investment in connectivity and digital services.

MTN’s device affordability challenge

Mupita said MTN would continue investing in networks, fintech and digital infrastructure despite pressure on handset prices. He also identified fibre-to-the-home as a major service frontier over the next five to ten years. His comments frame affordability as a problem that requires more than building mobile network coverage.
One detail needs careful wording. A separate Peoples Gazette report quotes Mupita: “Memory prices have gone up by 80 per cent, impacting the cost of data-capable devices.” — Ralph Mupita, MTN Group president and CEO. The 80 per cent refers to memory prices, not a verified rise in finished-phone prices.
Mupita said MTN had expected devices to cost about $50 three years ago, but now put the same category at $80 to $100. The example illustrates pressure, not a market-wide price index. He said the rise would not derail MTN’s investment plans.

Smartphone prices and shipment estimates

The affordability concern comes amid a global memory shortage linked to demand from AI data centres. IDC’s preliminary figures, reported by Telecoms.com, put worldwide smartphone shipments at 255.3 million in the third quarter of 2026, down 22 per cent year on year. Shipments measure devices sent to the market, not necessarily phones purchased by consumers.
A separate estimate from Counterpoint Research put the quarterly shipment decline at 20 per cent. Counterpoint also said global retail smartphone prices had risen 20 per cent so far in 2026. These estimates differ, but both point to pressure on lower-cost phone segments as components become more expensive.
TechNext reports that existing models rose 15 per cent and new ones 25 per cent. [UNVERIFIED — SOURCE NEEDED] The sources checked did not confirm those categories. Counterpoint reported a 20 per cent overall price rise instead.

Smartphone access and digital inclusion

The price issue matters because a mobile signal alone does not give people access to online services. Users also need an internet-enabled phone and enough money for data. For households facing tight budgets, a more expensive handset can delay the move from basic calls and texts to mobile internet.
The GSMA says handset affordability is the largest barrier to mobile internet adoption in Sub-Saharan Africa. In a joint initiative with MTN and other operators, the association estimated that a $40 smartphone could bring mobile internet within reach of 20 million more people in the region. It estimated a $30 phone could potentially connect up to 50 million more.
The initiative proposes baseline requirements for entry-level 4G devices, including minimum standards for memory, battery and display. Its goal is to lower prices without making phones too limited for everyday use. The group also urged governments to remove taxes on entry-level smartphones priced below $100.

How MTN could respond to handset costs

Mupita identified instalment financing as one way to help customers manage higher upfront prices. He said MTN was working with financial institutions to let buyers spread payments over time. He also called for manufacturers and operators to work together to make lower-cost devices available.
Those options address different parts of the problem. Financing spreads a purchase across several payments, while lower-cost devices and tax changes can reduce the price itself. Neither guarantees that every customer can afford a smartphone, so the outcome will depend on the phone’s price, credit terms and household income.
MTN’s investment plans and its affordability push are connected. Better networks can expand coverage and capacity, while affordable phones help customers use that infrastructure. Mupita’s position is that MTN must keep investing while also finding ways to bring device costs closer to what customers can pay.
Ultimately, Mupita says device affordability will not halt MTN’s investment drive, but it remains a barrier to wider digital access. Industry groups are proposing cheaper 4G phone specifications, while MTN points to financing and manufacturer partnerships. Whether those steps ease the pressure will depend on how prices and access change over time.
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