Smartphone shipments in the Mea region have fallen by 11 per cent year-on-year, plummeting to the lowest Q1 figure since 2016, according to global technology market research firm Counterpoint Research.
High inflation rates, depreciation of local currencies and weak consumer sentiment are amongst the “prevailing” factors that impacted the regional market.
Counterpoint Research’s senior analyst, Yang Wang, said: “The Mea smartphone market saw another tough quarter as the macroeconomic environment remained challenging.
“Difficulties impacting consumer spending towards big-ticket upgrades such as smartphones are now well known, and both consumers and OEMs are adjusting to the new realities with extra caution. The prospect of a V-shaped rebound has dimmed as companies prioritise inventory management, cost controls and streamlined product portfolios.”
Xiaomi and Samsung experienced a two per cent dip, and Inifinix declined by six per cent, while Tecno’s shipments decreased by 10 per cent in the same period.
Despite the dip in shipment figures, the sector saw “signs of stabilisation” at the end of the period.
For example, high Ramadan and Easter promotions proved beneficial to companies such as Apple which bucked the trend in Q1 as its shipments to the region surged by 35 per cent owing to its iPhone 14 series.
Mr Wang said the weak consumer demand will “remain the main theme for the rest of the year” as consumers will stick to current devices and upgrade later.
“However, expect that the inventory situation will improve gradually by the second half of the year, which will be followed by more ambitious product portfolio revamps and promotional activities by OEMs and distributors.
“This will coincide with better economic conditions as global interest rates and energy prices stabilise, providing much-needed breathing room for consumers in emerging markets.”
Shipment levels are on track to “improve gradually” in H2 as smartphone vendors will be launching new devices and promotions.
