The Middle East smartphone market (excluding Turkey) started 2025 on a subdued trajectory. According to Canalys (now part of Omdia), smartphone shipments in the Middle East fell 4% year-on-year to 11.7 million units in Q1 2025. After a strong rebound in 2024, the market is cooling amid softened retail demand and cautious consumption in early 2025. Even aggressive end-of-year promotions failed to offset the impact of rising economic uncertainty and increasingly sluggish consumer spending. Compounding the challenge, falling oil prices, intensified by new US tariffs, threaten to place oil-dependent economies under financing strain, further weakening regional sentiment.
Saudi Arabia held a dominant 26% share of the Middle East smartphone market in Q1 2025, but shipments declined 12% year on year. The drop was driven by subdued consumer demand during Ramadan, as spending shifted toward lifestyle segments like travel, food and automotive upgrades, limiting discretionary budgets for smartphones. Iraq saw an 11% decline, with falling oil prices intensifying economic pressure and prompting consumers to prioritize essential goods over device upgrades. In the UAE, shipments dipped just 1%. The relatively resilient economy, bolstered by robust retail activity during Eid al-Fitr celebrations and stronger tourist inflows, helped sustain demand.
In contrast, Kuwait and Qatar showcased strategic growth. Kuwait achieved 13% growth, fueled by aggressive promotional activity during the Hala Festival, led by aggressive promotions by retailers like Xcite and Eureka. Qatar led regional growth with a 16% surge, supported by more than 1.5 million tourist arrivals in Q1 2025 and a booming luxury retail sector. The country’s strategic tourism efforts, rising appetite for premium goods and digitally engaged consumers have helped position it as a standout growth market in the region.
Premium demand drives ASP surge, Samsung led market growth in Q1 2025
“The Middle East is rapidly evolving into a premium-first smartphone region,” said Manish Pravinkumar, Principal Analyst at Canalys (now part of Omdia). “Amid the overall regional market decline, shipments in the US$600+ segment grew by 17% year on year in Q1 2025. Samsung led the pack with an impressive 19% growth, driven by sustained demand for its Galaxy A-series and the flagship Galaxy S25 Ultra, which alone accounted for 9% of its total shipments. The brand’s deepening strategic alliance with e& in markets like UAE is set to reshape the smart device ecosystem, reinforcing its dominance in the premium Android space.”
“TRANSSION is navigating increased competition from value-focused brands, particularly in key markets like Saudi Arabia and Iraq,” added Pravinkumar. “While it continues to lead the sub-US$100 segment with a solid 43% share, this marks a decline from 51% a year ago. Most of its shipments were driven by Infinix, which accounted for 9% of the overall market share among its three brands, underscoring its pivotal role in TRANSSION’s portfolio. Despite regaining the third position, Xiaomi experienced a 31% year-on-year decline, impacted by inventory adjustments and a cautious channel strategy. The brand is focused on recalibrating its market and ecosystem priorities to drive renewed momentum in 2025. Apple, meanwhile, delivered 10% growth, supported by strong uptake of the iPhone 16, BNPL-led affordability and deeper retail access. Emerging players like HONOR and Motorola also posted notable growth of 36% and 12%, respectively, as they expanded retail presence and launched competitive product offerings across key Middle East markets.”
|
Middle East* smartphone shipments and annual growth |
|||||
|
Vendor |
Q1 2025 |
Q1 2025 |
Q1 2024 |
Q1 2024 |
Annual |
|
Samsung |
3.7 |
32% |
3.1 |
25% |
19% |
|
TRANSSION |
1.9 |
16% |
2.7 |
22% |
-30% |
|
Xiaomi |
1.6 |
14% |
2.3 |
19% |
-31% |
|
Apple |
1.3 |
11% |
1.2 |
9% |
10% |
|
HONOR |
1.2 |
10% |
0.8 |
7% |
36% |
|
Others |
2.1 |
18% |
2.1 |
17% |
-1% |
|
Total |
11.7 |
100% |
12.3 |
100% |
-4% |
|
|
|
|
|||
|
Note: Xiaomi estimates include sub-brand POCO. Percentages may not add up to 100% due to rounding. |
|
||||
Price-only strategy no longer enough in the ME market
“5G is no longer a key upgrade driver,” said Pravinkumar. “As AI-powered innovation accelerates, with 53% of Q1 smartphone shipments being AI-capable, the Middle East is shifting toward smarter, experience-led devices. Despite a soft start to 2025, demand for premium features and mid-range strength signals steady growth. The Middle East is emerging as a key hub in the global smartphone value chain. Amid evolving trade dynamics and rising retail costs in markets like Saudi Arabia and the UAE, brands must invest in ecosystem innovation, premium retail experiences and deeper partnerships. The convergence of AI, content and connected hardware will shape the next chapter, and those leading with value and experience will define the region’s digital future.”
For more information, please contact:
Manish Pravinkumar: [email protected]
About Smartphone Analysis
Canalys’ (now part of Omdia) worldwide Smartphone Analysis service provides a comprehensive country-level view of shipment estimates far in advance of our competitors. We provide quarterly market share data, timely historical data tracking, detailed analysis of storage, processors, memory, cameras and many other specs. We combine detailed worldwide statistics for all categories with our unique data on shipments via tier-one and tier-two channels. The service also provides a unique view of end-user types. At the same time, we deliver regular analysis to give insights into the data, including the assumptions behind our forecast outlooks.
About Canalys
Canalys, now part of Omdia, is a leading global technology market analyst firm with a distinct channel focus. We strive to guide clients on the future of the technology industry and to think beyond the business models of the past. We’ve delivered market analysis and custom solutions to technology vendors worldwide for over 25 years. Our research covers emerging, enterprise, mobile and smart technologies. Understanding channels is at the heart of everything we do. Our insightful reports, data and forecasts inform our clients’ strategies, while the Canalys Forums and Candefero online community give the channel feedback opportunities. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.
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