• Activity in the MEA smartphone market remains at a high level, though growth has moderated due to the lack of more catalysts.
• Samsung maintained its leading position in Q2 while Xiaomi grew strongly.
• Transsion remained the largest OEM, though it is facing stiff competition from rival Chinese brands in the lower-mid segment.
• LTE still takes around half of smartphone volume, though 5G is rapidly growing.

London, Beijing, Buenos Aires, Hong Kong, New Delhi, San Diego, Seoul, Taipei, Tokyo – August 28, 2024

Smartphone shipments in the Middle East and Africa (MEA) region grew 3% YoY in Q2 2024, according to the latest research from Counterpoint’s Market Monitor Service. In QoQ terms, the market was flat with 1% growth, despite a temporary lift due to Ramadan and Easter sales. The strong growth experienced in 2023 is unlikely to repeat, given the lack of new catalysts to sustain that momentum. However, the macroeconomic conditions continue to improve, meaning any risk of a downturn is relatively low.

Commenting on the market’s dynamics, Senior Analyst Yang Wang said, “The MEA smartphone market has settled into typical levels of growth, after outperforming most regions last year. Macro conditions continue to improve, with lower inflation and stabilizing domestic currencies, which have supported consumer appetite and led to global brands paying more attention and diverting resources to the region’s market. Brands that have invested in local distribution and branding initiatives, as well as improving popular models’ availability in local markets, have seen encouraging sales this year.”

In Q2 2024, 5G smartphone shipments rose 30% YoY to form 35% of the market. While LTE still holds a larger share, 5G is rapidly growing due to increasing competition among OEMs, lower prices and wider product availability. Operators continue to roll out 5G networks and infrastructure, which will support 5G smartphone sales in the long run.

Insights on key brands during Q2 2024

Samsung maintained its leading position in the MEA smartphone market but with a slight decline of 1% YoY. The brand managed to stem market share losses in the lower-mid segment due to impressive sales of the A05 and A15 series. On the other hand, discounts and trade-in programs boosted sales of premium models, securing Samsung’s market leadership.

Transsion Group led the MEA smartphone market in terms of OEMs with a 29% share, despite tough competition from Samsung and other Chinese brands. TECNO achieved steady growth through aggressive pricing and promotions, but its success seems to be impacting Infinix and itel, which are facing challenges in the mid-price segments. Transsion brands are expected to face increasing pressure as other Chinese brands are likely to double down on competing directly in the lower-to-mid segment.

Xiaomi saw a notable 67% YoY growth, mainly due to the strong performance of its Redmi series. Q1 and Q2 of 2024 are firmly the best-ever period that Xiaomi has enjoyed in the region, with more than 15% market share. The company’s focus on the lower-to-mid segment, with better product availability and local launches, has driven Xiaomi's success.

Apple moved to the fourth spot, surpassing Infinix, but its sales remained flat YoY. The company introduced substantial promotions and discounts to gain a temporary boost during a typically slow quarter. The soon-to-be-launched iPhone 16 series is expected to perform better, as the company continues to broaden channel penetration in the region.

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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