Smartphone Market Growth Slows in Middle East and Africa, Samsung Leads, Xiaomi Rises

Smartphone Market Growth Slows in Middle East and Africa, Samsung Leads, Xiaomi RisesIn the second quarter of 2024, Counterpoint, a renowned research firm, released a report on the Middle East and Africa smartphone market, indicating a slowdown in growth but intense competition. The report highlighted Samsung's continued leadership, Xiaomi's strong performance, and Transsion's struggle against competition from other Chinese brands

Smartphone Market Growth Slows in Middle East and Africa, Samsung Leads, Xiaomi Rises

In the second quarter of 2024, Counterpoint, a renowned research firm, released a report on the Middle East and Africa smartphone market, indicating a slowdown in growth but intense competition. The report highlighted Samsung's continued leadership, Xiaomi's strong performance, and Transsion's struggle against competition from other Chinese brands.

Market Growth Slows, 5G Penetration Increases

The report revealed a 3% year-over-year growth in the Middle East and Africa smartphone market in Q2 2024, significantly lower than the previous year's growth rate. The market has stabilized and entered a regular growth phase. Despite the slowdown, 5G phone penetration is rapidly increasing, rising from 32% in the previous quarter to 35%, a 30% year-over-year increase. This indicates a transition from 4G to 5G in the market, suggesting a potential surge in 5G phone sales.

Brand Rankings and Performance Analysis

1. Samsung:

Samsung retained its top spot with a 23% market share, experiencing a 1% year-over-year decline. However, the strong performance of its A05 and A15 series in the low-to-mid-range market effectively prevented further market share loss.

2. Transsion:

Transsion secured the second position with a 16% market share, achieving a 7% year-over-year growth. Notably, Counterpoint calculated the market shares of Transsion's sub-brands TECNO, Infinix, and Itel separately, resulting in an overall 28% market share for Transsion, making it effectively the market leader. However, Infinix saw a staggering 42% year-over-year decline in market share, reflecting the challenges Transsion faces in managing its sub-brands. With other Chinese brands rapidly entering the low-to-mid-range market, Transsion will face greater pressure in the future.

3. Xiaomi:

Xiaomi ranked third with a 15% market share, registering a remarkable 67% year-over-year growth, fueled by the strong performance of its Redmi brand. In Q1 and Q2 2024, Xiaomi achieved record-high market share in this region, exceeding 15% in both quarters.

4. Apple:

Apple secured the fourth position with a 6% market share, experiencing a 1% year-over-year growth. Nevertheless, despite the increase in shipments, Apple's sales remained flat, indicating a substantial use of promotional and discount strategies to capture market share in the second quarter.

5. Infinix:

Infinix ranked fifth with a 5% market share, witnessing a significant 42% year-over-year decline. As a sub-brand of Transsion, Infinix's market share drop reflects the competitive pressure faced by the parent company.

Market Competition Intensifies, Opportunities and Challenges Coexist

The Middle East and Africa smartphone market is becoming increasingly competitive, with more brands entering the fray, offering a wider range of options to local consumers. However, the market rivalry is also becoming more intense for smartphone brands. The key to success lies in effectively addressing local consumer needs and adapting to the constantly changing market environment.

Conclusion

The Middle East and Africa smartphone market exhibited a slowdown in overall growth in Q2 2024, but 5G phone penetration is rapidly rising. Samsung continues to lead the market, Xiaomi performs strongly, while Transsion faces competition from other Chinese brands. The market is expected to remain intensely competitive, demanding continuous innovation and product competitiveness from brands to ensure success in this dynamic landscape.