Mobile phone shipments to the GCC region have decreased by 5.9 per cent in the third quarter of this year as a result of product shortages and inflationary pressure, according to a study by The International Data Corporation.
The research reveals that smartphone and feature phone shipments were down by 5.7 per cent and 8.1 per cent respectively compared to the previous quarter. On average, the GCC smartphone market value has reached $1.93 billion, registering an uptick of 5.4 per cent, whereas the feature phone market has declined to $8.42 billion, marking a 17 per cent downfall.
Research manager of The International Data Corporation, Akash Balachandran, said: “Product shortages, while generally improved compared to previous quarters, continued to plague portions of the smartphone market.
“Furthermore, inflationary pressures impacted consumer spending among low- and mid-end price bands, as discretionary spending was directed toward essentials.
“The market’s premium price bands performed well in Q3 2022 due to the release of several popular flagship devices from Apple and Samsung, which explains the quarterly growth in value.”
Notably, Saudi Arabia was responsible for 52.4 per cent of all smartphones shipped across the region in Q3 of this year. In contrast, the overall number of shipments to the kingdom decreased by 4.4 per cent QoQ in unit terms, The International Data Corporation study finds.
The GCC’s second-largest market, the UAE, accounted for 23.6 per cent of the region’s overall smartphone market, although shipments to the country were down by 7.2 per cent.
“The decline in these two large markets came as a result of an unwillingness among channel partners to carry inventory as they are being challenged by fluctuating prices and varied pricing between different retail segments,” said Mr Balachandran.
The study underscored that the GCC smartphone market is currently anticipated to witness a rise of 13.8 per cent QoQ, bolstered by factors like the Fifa World Cup driving retail footfall in the UAE and Qatar and the hope that supply issues will be resolved promptly.
Senior research manager at The International Data Corporation, Ramazan Yavuz, said: “5G penetration is set to continue to grow as the technology is expanding into lower price bands.”
5G devices were responsible for 38.2 per cent of smartphone shipments to the GCC in Q3 of this year.
