According to Canalys, now part of Omdia, the smartphone market in the Middle East (excluding Turkey) saw impressive growth in 2024, expanding by 14% annually—nearly double the global recovery rate of 7%. A total of 48.4 million smartphones were shipped throughout the year, driven by vendors’ market expansion efforts and increasing consumer demand for premium devices. However, the growth rate slowed in Q4 2024, with shipments rising by just 3% year-on-year to 12.5 million units, after a substantial 29% surge in the first half of the year. This slowdown can be attributed to channel inventory buildup from H1 and the economic challenges posed by inflation and shifting consumer spending habits.
Key markets in the region showed moderate growth in Q4 as channels remained cautious after the first-half surge in shipments. Saudi Arabia’s smartphone market grew 6% year-on-year, down from earlier double-digit gains. The country’s ecommerce-driven culture, fueled by exclusive launches like iQOO’s partnership with Noon and year-end promotions such as Xtra’s “Mega Sale,” continued to influence consumer spending, despite the impact of rising housing and energy costs. The UAE also saw modest 4% growth, boosted by aggressive retail promotions, including loyalty-driven offers and bundled high-end phones with attractive prizes. Meanwhile, Iraq’s smartphone market declined by 4%, impacted by inflation and unemployment, which affected demand. However, Kuwait and Qatar witnessed strong growth at 19% and 15%, respectively, with a boost in consumer spending in Kuwait and retail growth driven by tourism in Qatar.
The premium segment continued to dominate as top brands introduced product and channel-led initiatives to enhance their market positions. Samsung’s average selling price (ASP) rose 27%, driven by a 54% year-on-year increase in demand for its AI-powered Galaxy S24 series. This surge in popularity was bolstered by early AI adoption, aggressive marketing, and trade-in offers from retailers like Emax in the UAE. The launch of the Galaxy S25 series in 2025 is expected to further enhance Samsung’s position, with even more advanced AI features and deeper ecosystem integration. Xiaomi experienced a decline in shipments but saw a 15% increase in its ASP, driven by the popularity of the Xiaomi 14T series and plans to boost its channel branding efforts in 2025. Apple maintained a 15% market share in the premium segment, though its ASP declined by 6%. With Saudi Arabia as a key focus market, Apple is expanding its retail and online presence to cater to the region’s growing demand for premium devices.
Emerging brands like HONOR and Motorola also showed strong performance, with HONOR achieving a 30% increase in shipments in Q4, the highest growth among the top five brands. HONOR’s expansion was supported by aggressive product launches and a significant increase in retail presence, including seven new experience stores in the UAE and entry into new markets like Oman and Qatar. Motorola also posted double-digit growth by catering to various price segments and appealing to Gen Z with trendy designs and vibrant user interfaces. Looking ahead, Motorola will focus on expanding into the B2B/enterprise sector with strategic partnerships in the region.
Despite the positive performance of premium devices, the Middle East smartphone market is expected to experience cautious, single-digit growth in 2025. Changes in retail dynamics, consumer behavior, and macroeconomic factors are expected to shape the market’s future. Non-oil economic expansion and strategic fiscal policies will drive diversification, while AI-driven devices, BNPL (Buy Now Pay Later) services, and social commerce platforms like Instagram and TikTok will continue to influence purchasing decisions. Retailers in Saudi Arabia and the UAE are expected to further innovate with hyperlocal strategies and immersive technologies to engage consumers. With the region’s mobile-first approach accelerating ecommerce, self-checkout innovations, and seamless payments, the market is poised for growth, albeit at a slower pace.
To capitalize on future opportunities, smartphone vendors will need to prioritize value, innovation, and convenience to meet evolving consumer expectations in the coming years. Upcoming product launches are expected to focus on gaming, AI integration, ecosystem-based offerings, and enhancing trade-in programs to encourage consumer upgrades.
Middle East Smartphone Shipments and Annual Growth:
Canalys Smartphone Market Pulse: Q4 2024
- Samsung: 3.8 million shipments (31% market share), 8% annual growth
- TRANSSION: 1.9 million shipments (16% market share), -14% annual decline
- Apple: 1.8 million shipments (15% market share), 4% annual growth
- Xiaomi: 1.8 million shipments (14% market share), -10% annual decline
- HONOR: 1.0 million shipments (8% market share), 30% annual growth
- Others: 2.1 million shipments (17% market share), 12% annual growth
- Total: 12.5 million shipments (3% annual growth)
Middle East Smartphone Shipments and Annual Growth (Full Year 2024):
- Samsung: 14.4 million shipments (30% market share), 0% annual growth
- TRANSSION: 8.3 million shipments (17% market share), 9% annual growth
- Xiaomi: 8.1 million shipments (17% market share), 33% annual growth
- Apple: 5.3 million shipments (11% market share), -5% annual decline
- HONOR: 3.2 million shipments (7% market share), 67% annual growth
- Others: 9.1 million shipments (19% market share), 32% annual growth
- Total: 48.4 million shipments (14% annual growth)
