• The MEA smartphone market declined 11% YoY in Q3 2024 due to inventory pile-up from the previous quarter.

• Average selling price (ASP) continued to increase, particularly in the $400-and-above price band.

• 5G smartphone shipments grew due to lower prices and better product availability.

• realme was tied for fifth place. Samsung remained the market leader.

London, Beijing, Buenos Aires, Hong Kong, New Delhi, San Diego, Seoul, Taipei, Tokyo – Nov 25, 2024

Smartphone shipments in the Middle East and Africa (MEA) region declined 11% YoY and 5% QoQ in Q3 2024, according to the latest research from Counterpoint’s Market Monitor Service. The decline was caused by inventory pile-up from the previous quarter and lingering economic uncertainty, which prevented the region from matching last year’s strong sales.

Commenting on the market’s dynamics during the quarter, Senior Analyst Yang Wang said, “The MEA smartphone market stayed active but faced challenges as OEMs delayed major promotions and launches until the festive season. Persisting economic challenges likely put pressure on the market, while brands took a pause after intense levels of competition during the first half of the year. On the other hand, demand for better connectivity and increasing 5G adoption due to lower device costs underpinned still-positive fundamentals for the market. The festive season should see better market results amid model refreshes and stronger promotional activities.”

In Q3 2024, the average selling price (ASP) of smartphones in the MEA region increased by 10% YoY, driven by growing demand for premium models ($400 and above), especially from Apple and Samsung. Consumer preference for advanced features like better cameras, displays and 5G is aligning with those from more advanced markets. As sales of budget smartphones slow, which is evident from ever-lower LTE smartphone penetration, brands are focusing more on the mid-range and premium segments to meet shifting consumer preferences.

In the MEA region, the brightest spot is 5G, whose smartphone shipments grew 18% YoY to make up 22% of the total shipments during the quarter. Samsung led the 5G smartphone market with a 37% share, followed by Apple and Xiaomi. The availability of affordable 5G smartphones has led to an increase in demand, while operators in advanced markets like South Africa and Nigeria are expanding 5G networks to meet the demand for faster internet and improved digital services.

Insights on key brands during Q3 2024

• Samsung remained the market leader in Q3 2024 with a 23% share, though it saw a YoY shipment decline. The company reduced its active models during the quarter from 102 to 95 and lost ground to faster-growing Chinese players in the low- to mid-range segment. However, Samsung experienced growth in models priced $400 and above, and took back market share from Apple in the premium segment.

• Transsion Group saw its market share decline from 34% in Q3 2023 to 30% in Q3 2024, its biggest drop in seven quarters. TECNO struggled across various price segments as it saw strong competition in its quest to sell more premium models. Infinix and itel also faced significant setbacks due to reduced price competitiveness in the low-end segment. Nevertheless, the company is expected to bounce back in Q4, which typically is its strongest quarter.

• Xiaomi saw flat sales YoY in Q3 2024 but a QoQ decline. The brand is struggling to find new momentum due to a lack of new product launches and sales incentives. A renewed push with budget-friendly 5G devices during the festive season can reignite its fortunes in the region.

• Apple grew 12% YoY, driven by the launch of the iPhone 16 series, whose sales momentum remained similar to last year’s models. However, weaker sales of older iPhone models caused overall growth to plateau. Apple is expected to continue to improve product availability and implement targeted promotions to drive demand in the region in the coming years.

• realme saw a 100% YoY growth in Q3 2024, driven by its strong focus on the entry-level segment, where it gained significant popularity. The brand implemented well-targeted promotions to attract budget-conscious consumers while offering good value for money.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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