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UAE mobile phone sales reach Dh2.7 billion in Q1 2024

UAE mobile phone sales reach Dh2.7 billion in Q1 2024
21 July 2024 20:20

YOUSSEF AL ARABI (ABU DHABI)

Total mobile phone shipments to the UAE grew by 28.2% to reach approximately 1.68 million devices during the first quarter of 2024, valued at about Dh2.73 billion ($744 million).

This compares to 1.31 million devices during the same period last year, according to the global data institution IDC, which specialises in communications and information technology research. The UAE accounted for about 27% of the total shipments of mobile phones from global manufacturers to their agents and distributors in the Gulf countries, which amounted to 6.27 million units during the first three months of this year.

The data obtained by Aletihad indicated that smartphones accounted for 91% of the total mobile phone shipments to the UAE, amounting to 1.528 million smartphones, compared to a share of no more than 9% for traditional devices, with a number not exceeding 152,000 devices.

The average price of a mobile phone in the UAE during the first quarter of this year was Dh1,625 ($442.9) per device. The data also indicated that phones supporting fifth-generation networks accounted for 55.3% of the total number of mobile phones sold in the GCC countries during the aforementioned period.

Akash Balachandran, Regional Research Director at IDC, said: “Mobile phone shipments in the UAE witnessed strong growth in the first quarter of 2024." Balachandran attributed the strong growth in shipments to new features in mobile phones such as artificial intelligence and the acceleration of the shift to 5G-enabled devices. He expects growth to stabilise during the remainder of 2024 at the levels recorded in the first quarter.

Globally, the latest quarterly mobile phone report issued by the International Data Corporation (IDC) showed that global smartphone shipments grew to 289.4 million units in the first quarter of this year, an increase of 7.8% from the same period last year. The top three smartphone vendors by shipments were Samsung (20.8% market share), Apple (17.3%), and Xiaomi (14.1%).

“Despite having a significant market share, Samsung’s shipments declined 0.7% in the quarter compared to the same period last year,” said Ryan Reith, vice president of IDC’s Worldwide Mobility Devices and Consumer Device Tracker. While Apple managed to take the top spot at the end of 2023, Samsung reasserted itself as the top smartphone vendor in the first quarter.

“The smartphone market is coming out of the volatility of the past two years,” said Nabila Popal, research director of IDC’s Worldwide Mobility Tracker. “We continue to see growth in value and average selling prices, as consumers opt for more expensive devices knowing they will keep their devices longer.”

The growth in smartphones means more challenges for the tablet market, she explained. In a separate report, the research firm said that due to weaker demand and consumers prioritising other purchases, tablet shipments declined worldwide by 17.4% year-on-year in Q4 2023.

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