Analyst company Canalys reported smartphone shipments in the Middle East saw 2% year-on-year growth in Q2, against the backdrop of overall shipments declining globally by 10%.
Over 9.5 million smartphones were shipped in the Middle East (excluding Turkey) in the second quarter. Saudi Arabia was a big driver as its market grew by 19% year-on-year due to due to strong macroeconomics, non-oil sector expansion and vendors replenishing distribution channels for the Eid and Ramadan sales season.
In the UAE, shipments increased by 6% which was driven by tourism during the holiday season. Iraq was highlighted for its “substantial growth” rate of 24% as it overcame economic challenges and currency fluctuations. Israel saw a 19% plunge as inflation affected consumer confidence. Low consumer demand was also seen in Kuwait and Qatar, as less than half a million were shipped in each market, declining at 15% and 23% respectively.
“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.”