Less than two years after it debuts its mobile phones in Nigeria, Fero Mobile has closed shop in Nigeria.
People familiar with the matter said the company cited ‘harsh’ economic conditions for its closure.
Merchandisers who pleaded anonymity said they received a messaged on the closure of the company and its sales outlets as well as partner stores.
However, Nigeria’s mobile market is the most competitive with Transsion Holdings’ Tecno and its sister brands leading the market by close to 60% market share. Samsung mobile, Gionee and Huawei are major brands in the market but the recent return Nokia by HMD Global has further heightened competitive pressures in the market.
A market analysts said there are over 30 mobile phone brands in the Nigerian market but just about 10 of them have majority of the entire market share with pricing and promotions used to drive sales.
The latest ordeal of Fero further shows that the smartphone production and marketing business is not as rosy as it seems.
Fero Mobile is owned by Midcom Group, a diversified retailer of mobile phones, consumer electronics, dairy products. In a company disclosure, the company valued itself at $1.5 billion.
We could not reach Fero Mobile for comments on the matter. Fero Mobile is available in other African markets, it is not clear if the closure would affect other markets.