The Middle East’s smartphone market grew in 2024, but Q4 told a different story
Samsung dominated, HONOR surged and Apple is eying Saudi Arabia for growth.
The Middle East remains a smartphone powerhouse, but the days of impulsive upgrades are fading.
If 2024 smartphone market data from Canalys showed anything, it’s that while upgrading to a new phone still excites consumers, they’re doing it less frequently. Yes, the market grew by 14% year-on-year, nearly twice the global recovery rate, with 48.4 million smartphones shipped. Consumers were still buying, and premium devices were more in demand than ever. But by the end of the year, the excitement had started to wear off.
After an explosive 29% surge in the first half of 2024, momentum slowed in Q4, with shipments rising by just 3% year-on-year. Rising inflation, excess inventory buildup, and shifting consumer spending habits meant that the smartphone frenzy of the past few years was beginning to settle into something more measured. The industry now faces a reality where longer replacement cycles could define 2025.
The biggest shift in 2024 was the move toward premium smartphones. Consumers weren’t just buying more phones, they were buying better ones a trend we've begun to see in the regions like India.
Saudi Arabia and the UAE led the region’s growth. Saudi Arabia’s market grew 6% in Q4, fueled by a booming e-commerce scene and major sales events. However, rising housing and energy costs are expected to curb spending in 2025. The UAE market also expanded by only 4% for the quarter. Meanwhile, Kuwait and Qatar stood out with 19% and 15% growth, driven by record consumer spending and a tourism-driven retail boom. But not every market saw gains—Iraq’s smartphone market declined by 4%, struggling under inflation and high unemployment.
Samsung dominated, shipping 14.4 million units, with ASPs jumping 27% to $487, thanks to a 54% surge in demand for the AI-powered Galaxy S24 series. Apple maintained a 15% market share but saw a 5% drop in shipments and a 6% decline in ASPs. Meanwhile, HONOR was the year’s biggest winner, growing 67% YoY with new store openings and regional expansion.
Looking ahead, 2025 is expected to be a year of steady but slower growth. Longer replacement cycles and economic factors may keep the market cautious, but the rise of AI-driven features, social commerce on Instagram and TikTok, and BNPL (buy now, pay later) services could reshape buying patterns.
Emmanuel Oyedeji
