TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

IDC

IDC

GCC mobile market buoyed by strong smartphone shipments, but uncertainty looms following global COVID-19 outbreak

Via IDC

Mar 4, 2020

04 Mar 2020 - DUBAI: Smartphone shipments to the countries of the Gulf Cooperation Council (GCC) increased 6.3% quarter on quarter (QoQ) in Q4 2019 to total 5.15 million units, according to the latest insights from global technology research and consulting firm International Data Corporation (IDC). However, this was not enough to prevent a small 0.2% QoQ decline in the region's overall mobile phone market, with feature phone shipments suffering a major decline of 18.1% to just 1.45 million units.

Smartphones accounted for 78.0% of overall mobile phone shipments in Q4 2019, up from 73.2% in the previous quarter. The extreme decline in feature phone shipments stemmed from the fact that telcos and channel players across the region (particularly in Saudi Arabia and Bahrain) have actively started to move away from offering devices that support the 2G spectrum. In terms of value, smartphone shipments increased 11.2% QoQ to $1.2 billion, while the value of feature phone shipments slumped 20.8% to $28.9 million.

The UAE and Saudi Arabia saw smartphone shipments increase 9.9% and 6.7% QoQ, respectively, in Q4 2019. Together, these two countries account for more than 75% of the GCC smartphone market. QoQ, smartphone shipments also grew in Bahrain (9.6%), Kuwait (2.1%), and Qatar (3.0%). Oman was the only GCC market to suffer a decline, with smartphone shipments falling 2.2% over the quarter.

"The shipment growth seen in some of the smaller GCC markets is a positive sign for the overall region, particularly as it comes after long periods of contraction," says Akash Balachandran, a senior analyst at IDC. "Previously, shipments had been constrained in these markets by the introduction new levies and taxes, shifting government policies, and challenging job conditions brought about by nationalization programs."

Samsung continued to dominate the GCC smartphone market in Q4 2019 with 40.6% unit share, although this was down 5.1 percentage points on the previous quarter. The contraction in Samsung's unit share largely stemmed from supply chain shortages in the channel and the exceptionally strong performance of Apple and Xiaomi, which increased their shipments 22.6% and 51.4%, respectively.

"Demand for Apple's newly released iPhone 11 series exceeded all previous market predictions," says Ramazan Yavuz, a senior research manager at IDC. "Meanwhile, Xiaomi increased its share of the GCC smartphone market to 6.8% following the strong expansion of its distribution network and the successful release of popular models like the Note 8 that have been very well received by consumers."

Shipments of Huawei devices to the region fell 1.7% QoQ in Q4 2019, with the vendor accounting for 15.7% share of the smartphone market, a significant decline from 24.3% in Q4 2018. "Given the challenges facing Huawei, the vendor performed exceptionally well in Q4 2019," says Balachandran. "In particular, the annual Mega Sales event in Saudi Arabia helped bolster its overall numbers for the GCC. While Huawei is unlikely to make up much ground in the coming quarters, its impending launch of a new mobile OS and integration of its app store with its new releases is likely to cement its position as one of the top three vendors in the GCC."

Looking ahead, vendors and channel partners are expected to release new form factors and increasingly push 5G devices to consumers over the coming year. Apple is slated to jump on the 5G bandwagon in late 2020, while Huawei will release the market's third major mobile operating system, Harmony OS. The UAE's Expo 2020 event will also be a major boon for players in the GCC mobile industry. However, the COVID-19 outbreak is likely to dampen mobile phone shipments over the course of the year, with IDC's initial forecast of growth for the GCC market in 2020 being downgraded to a year-on-year decline of 1.4%.

"The COVID-19 outbreak has created a lot of uncertainty in the smartphone industry and has had a huge impact on the supply chain for mobile devices," says Yavuz. "As a result, our growth forecast for the GCC's smartphone market has been revised downwards. After analyzing various factors and considering multiple recovery scenarios, IDC is currently implementing the most probable scenario analysis and expecting a recovery in the overall situation by the second half of the year. Having said that, the next few weeks will be crucial in determining the trajectory of the virus, and IDC will be monitoring the situation closely."

Related Topics
  • Announcement,
  • Coronavirus,
  • Global,
  • IDC,
  • Manufacturing & Industry 4.0,
  • Mobile,
  • Telecoms Vendors & OEMs,
  • Tracker

More Like This

Digital Platforms and Services

Spending on Compute and Storage Cloud Infrastructure Continues Strong Growth as Supply Chain Delivery Improves in the Third Quarter of 2022, According to IDC

Jan 12, 2023

Digital Platforms and Services

IDC Forecasts Steady Growth for Enterprise Applications through 2026 in Support of Digital Business Objectives

Jan 12, 2023

Access Evolution

Worldwide Enterprise WLAN Market Continues Strong Growth, Increasing Revenues 34% Year-Over-Year in Q3 2022, According to IDC Tracker

Dec 8, 2022

Access Evolution

What’s up with… Verizon, Nitel, $99 5G smartphones

Dec 5, 2022

Access Evolution

Global Smartphone Shipments Continue to be Impacted by Slowed Demand and Setbacks in China, According to IDC Tracker

Dec 2, 2022

This content extract was originally sourced from an external website (IDC) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

0:46

The Cloud Native Telco Summit returns this September!

8:32

Azita Arvani on Being a Female Leader at Rakuten Symphony

16:19

AT&T Amy Zwarico on securing telco applications in the public cloud

1:44

Join us for the greatest industry debate of the year!

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).