Middle East sees smartphone growth

Canalys, the renowned analytical firm, recently released a report on the smartphone market in the Middle East, revealing a noteworthy 2% year-on-year growth in the second quarter. This growth is particularly remarkable considering that global smartphone shipments experienced a substantial 10% decline during the same period. Intriguingly, more than 9.5 million smartphones found their way to Middle Eastern consumers (excluding Turkey) during this quarter. Saudi Arabia emerged as a key catalyst behind this growth, experiencing a remarkable 19% year-on-year expansion. Several factors contributed to this surge, including robust macroeconomics, the expansion of the non-oil sector, and vendors actively restocking distribution channels in preparation for the Eid and Ramadan sales season.

The United Arab Emirates (UAE) also witnessed a commendable 6% increase in smartphone shipments, attributed to the influx of tourists during the holiday season. Meanwhile, Iraq stood out for its impressive growth rate of 24%, defying economic challenges and currency fluctuations that might have hindered progress. On the flip side, Israel experienced a substantial 19% decline in smartphone shipments, largely influenced by inflationary pressures impacting consumer confidence. Kuwait and Qatar were also marked by low consumer demand, with both markets receiving less than half a million shipments each. These two nations saw their smartphone shipments decline by 15% and 23%, respectively, in Q2.

“In Q2 2023, both Apple and Samsung saw a decrease in shipments of premium segment smartphones in the Middle East, a result of cautious consumer spending and increased interest in budget alternatives,” said Canalys senior consultant Manish Pravinkumar. “Despite a 9% drop, Samsung retained its top spot, largely thanks to the success of its A series models, including the A24 and A14, in the more budget-friendly segment. Meanwhile, Apple continued to dominate the premium market, but saw most of its shipments concentrated on the iPhone 12 and 13 models due to budget-conscious consumers.”

Canalys analyst Sanyam Chaurasia added: “Amid strong economic performance post-pandemic, the smartphone market outlook in the Middle East remains resilient. With easing geopolitical tensions in the Middle East, FDI inflows are set to rise. The recovery in Gulf Cooperation Council (GCC) countries will be powered by non-oil sectors, driven by a strong domestic market. “The travel and tourism industry is making a robust comeback, boosting non-oil activities. Canalys expects the Middle Eastern smartphone market to maintain 2022’s shipment levels in 2023. Smartphone brands will target middle-income consumers seeking to upgrade from their lower-tier devices, with a key emphasis on improving visibility through offline retail engagement.”