The Middle East mobile phone market suffered its third consecutive quarter-on-quarter decline in Q3 2016 according IDC. Shipments in the region totaled 23.8 million units, down -0.7% on the 23.9 million units shipped in Q2 2016 and -19.4% on the corresponding period last year. The quarter-on-quarter decline in Q2 2016 was much steeper at -8.5%,
Mobile OEM Marketshare across Gulf and Middle East Countries( statista) |
Every country in the Gulf Countries recorded quarter-on-quarter declines in Q3 2016, with Saudi Arabia suffering the most with a negative dip in growth rate with -18.3%.Among the many factors which has impacted Mobile Phone Industry in Middle East specially Saudi Arabia has been he effects of the challenging macroeconomic climate are being compounded by the new ' saudization law that states that states that only Saudis can now be employed within the mobile phone industry covering sales, after-sales maintenance, and accessories. The kingdom's mobile market is predominantly driven by independent retailers, and the new law has taken a drastic toll on this space, with almost 50% of stores shutting down.
The impact of these closures has been huge so far with an immediate drop in shipments; however the expectation is that the channel will shift slowly and steadily towards organized retail as the market seeks to correct itself."
The impact of these closures has been huge so far with an immediate drop in shipments; however the expectation is that the channel will shift slowly and steadily towards organized retail as the market seeks to correct itself."
In terms of OEM's Samsung continued to lead the Middle East smartphone market with almost 35% share. Its shipments were down just -3% quarter on quarter. Huawei followed in the no 2 place with 14.4% share, while Apple garnered a share of 11% despite the launch of its iPhone 7. A shortage of supply for the iPhone 7, together with reduced supply of Apple's older models, was behind this performance. IDC expects Apple to rebound in Q4,2016.
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