Are Saudi Shoppers Spending Less on New Smartphones?
Recent data indicates that smartphone shoppers in Saudi Arabia and the UAE are responding differently to rising handset prices.
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Key Insights
Shipment Trends
- Saudi Arabia: Experienced a 12% decline in smartphone shipments during the first quarter of 2025.
- UAE: Saw a more modest drop of 1% in smartphone shipments, supported by a resilient economy.
Factors Influencing Demand
- In the UAE, strong retail activity during Eid al-Fitr and increased tourist inflows have helped maintain smartphone demand.
- In Saudi Arabia, there was a notable decrease in smartphone purchases during Ramadan, as consumers redirected spending towards lifestyle segments like travel, food, and vehicle upgrades.
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Premium Market Dynamics
Despite overall regional declines, the premium smartphone segment has shown resilience:
- Shipments in the $600+ category grew by 17% year-on-year in Q1-2025.
- Samsung reported a 19% growth, driven by demand for its Galaxy A-series and the flagship Galaxy S25 Ultra, which accounted for 9% of its total shipments.
AI-Driven Innovation
As the market evolves, AI-capable smartphones are becoming increasingly popular:
- 53% of Q1 smartphone shipments were AI-capable, reflecting a shift towards smarter, experience-led devices.
Future Outlook
Analysts suggest that brands need to focus on:
- Ecosystem Innovation: Investing in premium retail experiences and deeper partnerships.
- AI and Connected Hardware: The convergence of AI, content, and hardware will shape the future of the smartphone market in the region.
In summary, while Saudi shoppers are reducing their spending on new smartphones, the UAE market remains relatively stable, particularly in the premium segment, highlighting differing consumer behaviors and economic conditions across the Gulf region.
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