This is a comment to Johnston Kirimo’s blog post: South African phones to be made in Africa for Africa. https://blogs.ubc.ca/kirimo12/2013/11/14/south-african-firms-phones-to-be-made-in-africa-for-africa/

According to the article, the parts will be made in China and the phones assembled in South Africa. Then over time, the whole production process will shift to South Africa. The management of the firm expects to compete against huge firms like Samsung and Apple, with high hopes of acquiring a large customer base all over Africa.

I agree with the management that it is possible to attain a considerably large market both in South Africa and the rest of the continent. However, this can only be achieved lowering the prices greatly. A cheaper price will be a competitive advantage since not many people can afford the high prices charged by Samsung and Apple. While Johnston claimed that stronger brand images for Apple and Samsung may lead to tougher competition to a new firm, I disagree because when faced with choices, majority of the customers consider costs first. Thus, it is possible for a new South African firm to compete with Samsung and Apple, just in Africa.