Canalys: Smartphone shipments in the Middle East region in the first quarter decreased by 4% year-on-year to 11.7 million units.

Canalys data shows that in the first quarter of 2025, the smartphone shipments in the Middle East (excluding Turkey) dropped by 4% year-on-year to 11.7 million units, showing a weak performance. Despite a strong recovery in the market in 2024, the beginning of 2025 saw a decrease in overall market due to slowing retail demand and cautious consumers. Even with unprecedented promotional efforts at the end of the year, it was difficult to offset the impact of rising economic uncertainty and continued weak consumer spending. Additionally, factors such as falling oil prices and a new round of US tariff policies have put financial pressure on oil-dependent economies, further weakening the market confidence in the region. In the first quarter of 2025, Saudi Arabia maintained its position as the premier market in the Middle East smartphone market with a 26% regional market share, but saw a 12% decrease in shipments compared to the previous year. This decline was mainly attributed to weak consumer demand during Ramadan, with expenditure shifting towards travel, dining, and lifestyle upgrades such as cars, weakening the disposable budget for smartphones. The market in Iraq also decreased by 11%, with the decline exacerbated by the drop in oil prices, prompting consumers to prioritize essential goods over device upgrades. In contrast, the UAE market only slightly decreased by 1%. With active retail activities during Eid and an increase in tourist numbers, the country's economy showed more resilience, supporting the demand for smartphones. On the other hand, Kuwait and Qatar showed positive growth trends. Kuwait achieved a 13% increase in shipments during the "Hala Festival" period, driven by large-scale promotional activities by major retailers such as Xcite and Eureka. Qatar led the entire Middle East region with a 16% year-on-year growth, benefitting from over 1.5 million visitors in the first quarter of 2025 and a thriving luxury retail market. The country actively promotes the development of tourism, with rising consumer demand for high-end goods, coupled with highly digital consumption habits, making Qatar one of the most promising smartphone markets in the region. High-end demand drives ASP increase, Samsung leads market growth Canalys Chief Analyst Manish Pravinkumar stated, "The Middle East is rapidly moving towards a 'high-end first' smartphone market structure. Despite an overall decline in the region's market, in the first quarter of 2025, shipments of high-end models priced above $600 still increased by 17% year-on-year. Among them, Samsung's performance was particularly outstanding, with a 19% year-on-year growth. This growth was due to the continuous popularit...