GCC smartphone market suffers decline as demand continues to weaken

GCC smartphone market suffers decline as demand continues to weaken
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GCC smartphone market suffers decline as demand continues to weaken

New Launched Knowledge from IDC Worldwide quarterly cell phone tracker Reveals that shipments of cell phones to the Gulf Cooperation Council (GCC) space declined 0.8 p.c quarter on quarter (QoQ) in Q1 2022 to a complete of 6.10 million models.

Smartphone shipments are up 0.4 p.c QoQ to five.47 million models, whereas characteristic cellphone carriers decline 9.8 p.c over the identical interval to 0.63 million models. By way of worth, the GCC smartphone market was price $ 2.09bn in This fall 2021, a lower of 4.5 p.c QoQ, whereas the characteristic cellphone market was $ 11.16m, down 25.9 p.c.

Samsung and Xiaomi channels reported improved provide throughout the GCC for the quarter. Samsung noticed its most vital development within the low ($ 100 <$ 200) and premium ($ 800 +) ends of the market, whereas Xiaomi noticed development within the mid- to high-end class ($ 200 <$ 600).

In the meantime, Apple confronted scarcity standing of delayed cargo, which impeded the seller’s general unit and worth development throughout the quarter.

As well as, smartphone shipments to Saudi Arabia declined 4.9 p.c QoQ in Q1 2022, though the Kingdom nonetheless accounted for 53.3 p.c of all smartphone shipments to the GCC. The UAE, the area’s second-largest market, has seen cargo improve 11.2 p.c QoQ for twenty-four.9 p.c share.

“Q1 2022 has a drop in shipments to Saudi Arabia with companions reporting extra stock within the channel and lagging demand,” mentioned Akash Balachandran, senior analyst at IDC. “Nevertheless, the ‘different GCC’ nations (Bahrain, Kuwait, Oman and Qatar) have seen a gentle pickup after experiencing constrained provide in earlier quarters. The UAE’s smartphone development is principally as a consequence of an improved provide of low-end and premium Samsung gadgets, in addition to from Xiaomi’s concerted deal with selling its midrange gadgets.

Samsung led the GCC smartphone market by way of provider in Q1 2022 with 47.5 p.c share. The seller posted 6.9 p.c QoQ development in transport as provide improved, particularly for its S-Sequence gadgets. Second-placed Apple, with 15.4 p.c share, shipments decline 18.2 p.c QoQ, with channel companions reporting provide constraints and delays in cargo. Rounding the highest three, Xiaomi accounted for 14.9 per cent of the GCC smartphone market in Q1 2022, with its expanded portfolio of midrange to high-end gadgets driving a 9.3 p.c QoQ improve in shipments to the area.

The GCC smartphone market is forecast to say no 4.8 p.c QoQ in Q2 2022 as a consequence of rising inflation, declining shopper demand and rising stock within the channel.

“5G shipments to the GCC in Q1 2022 had been down 3.4 p.c QoQ and accounted for 35.9 p.c of general smartphone shipments,” says Ramazan Yavuz, senior analysis supervisor at IDC. “This was as a consequence of greater shipments of entry-level 4G Android gadgets along side scarcity of iOS 5G gadgets. Though ups and downs are anticipated within the brief time period, 5G penetration is forecast to proceed in its earlier speedy tempo throughout the machine and Long run and can make 80.6 p.c of complete GCC smartphone provider by 2026.

Learn: International smartphone gross sales declined by 6.8% in third quarter of 2021: Gartner

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