Mobile phone shipments to the GCC region declined 5.9% in the third quarter of 2022 due to product shortages and inflationary pressure. 

The International Data Corporation (IDC) said both smartphone and feature phone shipments were down by 5.7% and 8.1% compared to the previous quarter. The value of the GCC smartphone market was up to $1.93 billion, an increase of 5.4%, while the feature phone market was down to $8.42 billion, a decrease of 17%. 

“Product shortages, while generally improved compared to previous quarters, continued to plague portions of the smartphone market,” said Akash Balachandran, research manager, IDC. 

“Furthermore, inflationary pressures impacted consumer spending among low- and mid-end price bands, as discretionary spending was directed toward essentials. 

“The market’s premium price bands performed well in Q3 2022 due to the release of several popular flagship devices from Apple and Samsung, which explains the quarterly growth in value.” Saudi Arabia accounted for 52.4% of all smartphones shipped across the GCC in Q3 2022, although shipments to the kingdom were down 4.4% QoQ in unit terms, IDC said. 

The UAE, which is the GCC’s second largest market, accounted for 23.6% of the region’s overall smartphone market, despite shipments to the country declining 7.2%. 

“The decline in these two large markets came as a result of an unwillingness among channel partners to carry inventory as they are being challenged by fluctuating prices and varied pricing between different retail segments,” said Balachandran, adding that in Apple’s case, product shortages limited growth. 

IDC said the GCC smartphone market is now forecast to have grown 13.8% quarter-on-quarter, with the FIFA World Cup in Qatar driving retail footfall, as well as the expectation that supply issues will see some resolution. 

“5G penetration is set to continue to grow as the technology is expanding into lower price bands,” said Ramazan Yavuz, senior research manager at IDC.  

5G devices accounted for 38.2% of smartphone shipments to the region in Q3 2022 and the technology is expected to become standard in mid-tier price bands among Android vendors. 

“By the end of 2026, we expect that 5G devices will account for 82.6% of total GCC smartphone shipments.” 

(Writing by Imogen Lillywhite; editing by Cleofe Maceda) 

(imogen.lillywhite@lseg.com)