The Middle East smartphone market (excluding Turkey) experienced a 4 percent year-on-year decline in Q1 2025, signaling a slowdown after a strong 2024 rebound.
The dip was driven by weakening consumer demand, rising economic uncertainty, and falling oil prices — factors that especially impacted oil-reliant markets like Saudi Arabia and Iraq. Despite aggressive promotions, consumer spending remained cautious, shifting toward lifestyle and essential categories.
However, selective growth emerged in Kuwait and Qatar. Kuwait saw 13 percent growth, fueled by promotional campaigns during the Hala Festival, while Qatar led with 16 percent growth, driven by strong tourism, luxury retail momentum, and rising demand for premium smartphones. The UAE remained stable with only a 1 percent decline, supported by economic resilience and festive retail activity.
Strategically, the region is shifting toward premium devices, Manish Pravinkumar, Principal Analyst at Canalys (now part of Omdia), said. Shipments in the US$600+ segment rose 17 percent, highlighting evolving consumer preferences.
Samsung capitalized on this trend, achieving 19 percent growth — led by its Galaxy A-series and the flagship Galaxy S25 Ultra. Its alliance with telecom provider e& in markets like the UAE underscores a broader move to strengthen ecosystem partnerships and dominate the premium Android space.
Main smartphone vendors
Samsung increased its shipments from 3.1 million to 3.7 million units, boosting its market share from 25 percent to 32 percent, making it the leading vendor. In contrast, TRANSSION experienced a notable drop in shipments from 2.7 million to 1.9 million units, with its market share falling from 22 percent to 16 percent. Xiaomi also saw a decrease in performance, with shipments dropping from 2.3 million to 1.6 million and market share declining from 19 percent to 14 percent.
Apple recorded a modest increase in shipments, rising from 1.2 million to 1.3 million units, and saw its market share grow from 9 percent to 11 percent. HONOR performed well, increasing its shipments from 0.8 million to 1.2 million and expanding its market share from 7 percent to 10 percent. The “Others” category remained stable in terms of volume at 2.1 million units, with a slight increase in market share from 17 percent to 18 percent. Overall, while the market shrank, Samsung and HONOR made notable gains, whereas TRANSSION and Xiaomi lost ground.
AI demand
According to Canalys, the Middle East smartphone market is experiencing a shift from 5G as a main upgrade factor toward AI-driven innovation. In Q1 2025, 53 percent of smartphone shipments were AI-capable, reflecting growing consumer interest in smarter, experience-oriented devices. Despite a slow start to the year, strong demand for premium features and mid-range devices indicates steady market growth.
The region is becoming a key player in the global smartphone value chain, particularly in light of changing trade conditions and rising retail prices in countries like Saudi Arabia and the UAE. To stay competitive, brands must focus on ecosystem innovation, enhanced retail experiences, and strategic partnerships. The future of the market will be shaped by the convergence of AI, content, and connected devices, with value-driven and experience-focused brands set to lead the way.
Baburajan Kizhakedath
