Recent data from IDC’s Worldwide Quarterly Mobile Phone Tracker has revealed a 2.9 percent year-on-year increase in smartphone shipments to the Gulf Cooperation Council (GCC) region during Q2 2023, with an additional 2.8 percent growth compared to the previous quarter.
The prominent markets within the GCC, Saudi Arabia and the UAE, both witnessed annual and quarterly growth in smartphone shipments. This surge was propelled by the introduction and shipment of popular models in the midrange price segments. In contrast to the previous quarter, where the focus was primarily on premium releases, Q2 2023 saw a shift towards low-end and midrange products (priced between $100 and $400). This shift resulted in a decline in the region’s average selling price (ASP) compared to the previous quarter.
Samsung emerged as the leader in smartphone shipments across the GCC during Q2 2023, with Apple securing the second position and Xiaomi following closely in third.
Akash Balachandran, a research manager at IDC, noted, “Apple’s ability to maintain high ASPs in the market encouraged increased inventory in Q2 2023, resulting in annual and quarterly shipment increases. On the other hand, Samsung experienced annual and quarterly declines due to reduced shipments of its entry-level devices. Traditionally, Q2 marks the launch period for Xiaomi, contributing to a growth spurt in their shipments.”
However, looking ahead, IDC anticipates a subdued growth trajectory for the GCC market. Ramazan Yavuz, a senior research manager at IDC, remarked, “The smartphone markets are expected to face continued strain as global macroeconomic tensions impact subregions like the GCC. Low consumer confidence is likely to negatively affect demand, and budget constraints for device renewals will further impede growth. These factors collectively lead to a flat forecast for 2024, making a swift recovery unlikely in the near future.”
