In this article, a South African firm interested in the production of phones plans to produce its smart phones in South Africa. The phones will initially be partly assembled in China and partly in South Africa, and over time the production will fully shift to South Africa. The main target market is the African continent.
Considering the tough competition from the giant firms like Samsung and Apple, the possibility of a new firm to enter the industry and make profits is considerably difficult. Further, the phones do not seem to be coming with any unique features that would be the points of difference from those of competitors. Selling the phones at a considerably cheap price, combined with the strength of being a home-produced commodity might slightly be competitive advantages. However, majority customers usually prefer more expensive phones associated with a strong brand image, and this may greatly lower the sales of the cheaper South African phones.
http://www.theglobeandmail.com/report-on-business/international-business/african-and-mideast-business/south-african-firms-phones-to-be-made-in-africa-for-africa/article14994205/
I agree that it is extremely hard for smartphones to enter a market without a strong, distinct brand. Apple and Samsung have dominated the market for quite some time.
I recently did a blog post on Motorolla releasing a cheaper, $200, smartphone for developing countries. I was hoping to get your opinion on how that may sell in South Africa.
Here is a link to my post: