21 Jun 2022
GCC Smartphone Market Suffers Declines as Demand Continues to Weaken
Dubai – Newly released data from IDC's Worldwide Quarterly Mobile Phone Tracker shows that shipments of mobile phones to the Gulf Cooperation Council (GCC) region declined 0.8% quarter on quarter (QoQ) in Q1 2022 to total 6.10 million units. Smartphone shipments were up 0.4% QoQ to 5.47 million units, while feature phone shipments decline 9.8% over the same period to 0.63 million units. In terms of value, the GCC smartphone market was worth $2.09 billion in Q4 2021, a decrease of 4.5% QoQ, while the feature phone market totaled $11.16 million, down 25.9%.
Samsung and Xiaomi channels reported improved supply across the GCC for the quarter. Samsung saw its most significant growth in the low ($100<$200) and premium ($800+) ends of the market, while Xiaomi saw growth in the midrange to high-end category ($200<$600). Apple faced shortages stemming from delayed shipments, which impeded the vendor's overall unit and value growth during the quarter.
Smartphone shipments to Saudi Arabia declined 4.9% QoQ in Q1 2022, although the Kingdom still accounted for 53.3% of all smartphone shipments to the GCC. The UAE, the region's second-largest market, saw shipments increase 11.2% QoQ for 24.9% share.
"Q1 2022 saw a drop in shipments to Saudi Arabia with partners reporting excess inventory in the channel and lagging demand," says Akash Balachandran, a senior analyst at IDC. "However, the 'Other GCC' countries (Bahrain, Kuwait, Oman, and Qatar) saw a mild pickup after having experienced constrained supply in previous quarters. The UAE's smartphone growth stemmed mainly from an improved supply of low-end and premium Samsung devices, as well as from Xiaomi's concerted focus on promoting its midrange devices."
Samsung led the GCC smartphone market in terms of shipments in Q1 2022 with 47.5% share. The vendor posted 6.9% QoQ growth in shipments as supply improved, especially for its S-series devices. Second-placed Apple, with 15.4% share, saw shipments decline 18.2% QoQ, with channel partners reporting supply constraints and delays in shipments. Rounding out the top three, Xiaomi accounted for 14.9% of the GCC smartphone market in Q1 2022, with its expanding portfolio of midrange to high-end devices driving a 9.3% QoQ increase in shipments to the region.
The GCC smartphone market is forecast to decline 4.8% QoQ in Q2 2022 due to rising inflation, declining consumer demand, and growing inventory in the channel. Travel and tourism will continue to increase but will not be sufficient to improve the quarter.
"5G shipments to the GCC in Q1 2022 were down 3.4% QoQ and accounted for 35.9% of overall smartphone shipments," says Ramazan Yavuz, a senior research manager at IDC. "This was due to higher shipments of entry-level 4G Android devices in conjunction with shortages of iOS 5G devices. While ups and downs are expected in the short term, 5G penetration is forecast to continue at its previous rapid pace over the medium and long term and will make up 80.6% of total GCC smartphone shipments in 2026."
For more information, please contact Sheila Manek at firstname.lastname@example.org or on +971 4 446 3154.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,200 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
IDC in the Middle East, Turkey, and Africa
For the Middle East, Turkey, and Africa region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insights with international perspectives to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc.com/mea. You can follow IDC MEA on Twitter at @IDCMEA.
Copy the following code into your site
Xiaomi Inc., Shenzhen Transsion Holdings Co. Ltd., Apple Inc., Samsung
ContactFor more information, contact:
+971 4 446 3154