Samsung (35 percent), Transsion (15 percent), Xiaomi (14 percent), Apple (10 percent), Honor (6 percent) and Others (21 percent) are the leading smartphone brands in the Middle East during the third-quarter of 2024.
Samsung and Honor have enhanced their smartphone share in the Middle East. Transsion, Xiaomi and Apple have lost share in the smartphone market in the Middle East.
Smartphone market in the Middle East rose 2 percent to 12.2 million units during the third-quarter of 2024. Manish Pravinkumar, Senior Analyst at Canalys, says Middle East smartphone market is expected to grow low-single-digit in 2025.
Here are strategies for smartphone suppliers based on the insights from Canalys’ report on the Middle East smartphone market in Q3 2024:
# Leverage Local Promotions and Events
Expand localized retail efforts by aligning with cultural and national events like Saudi Arabia’s National Day and Dubai Summer Surprises (DSS).
Offer bundled deals, cashback offers, and split-payment plans to attract consumers during promotional seasons.
Partner with key retailers like Sharaf DG, Emax, and Lulu Hypermarkets to increase visibility and drive sales.
# Adapt Pricing to Economic Conditions
Provide competitive pricing for mid-range and entry-level models to attract cost-conscious consumers in inflation-affected markets like Saudi Arabia and Iraq.
Introduce flexible financing options to counter higher Average Selling Prices (ASPs) due to economic challenges. Smartphone brands realized that they cannot follow Xiaomi which witnessed a drop despite the launch of the budget-friendly Redmi 14C.
# Target High-Growth Segments
Focus on affluent markets like Kuwait, where spending power remains strong, and consumer preferences lean towards premium devices.
In Iraq, explore opportunities in local manufacturing initiatives to reduce costs and improve accessibility.
# Enhance Consumer Engagement
Invest in brand stores and experiential retail to boost consumer loyalty and visibility, as exemplified by HONOR’s expansion in Dubai.
Strengthen digital marketing efforts to highlight product features and value.
# Foster Innovation in Product Offerings
Develop affordable 5G devices to cater to price-sensitive but tech-forward consumers, following Motorola’s success.
Expand product portfolios to include durable and sustainable smartphones, targeting consumers with longer replacement cycles.
# Optimize Distribution Channels
Build strong relationships with regional retailers to optimize supply chains and ensure products are readily available in high-demand markets.
Use data analytics to anticipate regional demand fluctuations and adjust inventory.
# Focus on Ecosystem Integration
Strengthen product ecosystems, encouraging cross-product usage (e.g., smartwatches, earbuds, and IoT devices) to lock consumers into their brand.
# Monitor and Respond to Competitor Trends
Benchmark against market leaders like Samsung by emphasizing competitive pricing, value-added services, and channel incentives.
Stay alert to emerging players like HONOR and Motorola, adapting strategies to maintain competitive advantages. HONOR expanded its mid-range lineup and launched brand stores in Dubai to boost consumer engagement while Motorola’s affordable 5G series drove strong volumes.
# Expand in Strategic Regions
Capitalize on the long-term potential of high-growth markets like Saudi Arabia, the UAE, and Iraq by investing in local manufacturing and operations.
# Emphasize Sustainability
Develop products with recyclable materials and eco-friendly features to appeal to environmentally conscious consumers.
Highlight sustainability in marketing campaigns to enhance brand reputation and foster consumer trust.
By focusing on these strategies, suppliers can navigate macroeconomic challenges while positioning themselves for sustained growth in the dynamic Middle East smartphone market.
Baburajan Kizhakedath
