MANAMA: Consumers have prioritised spending on essentials while cutting back on discretionary spending in various categories, including mobile phones, shows new analysis.
Data from International Data Corporation (IDC) reveals a slight quarter-on-quarter (QoQ) decline of 0.2 per cent in Q3-2020 in the GCC mobile phone market with 4.97 million units sold in the quarter.
The firm’s latest Quarterly Global Mobile Phone Tracker found smartphone shipments declined 0.9pc to 4.16m units, while feature phone shipments increased 4.1pc to 0.8m units.
In terms of value, the smartphone market totalled $1.16 billion in Q3-2020, an 11.6pc QoQ decline.
However, the feature phone market’s value grew 1.9pc QoQ to $15.8m in value.
Despite most countries easing lockdown measures in Q3 2020, the channels chose to take a cautious view, as consumer demand remained modest throughout the quarter.
Meanwhile, Samsung extended its lead of the GCC smartphone market in the quarter, accounting for 44.6pc unit share.
In terms of value, it ranked second with 30.8pc.
“With its large portfolio of models in the entry-level and mid-range price bands, Samsung not only maintained its leading position but also captured share lost by Huawei,” says Akash Balachandran, a senior research analyst at IDC.
“The demand for low-end smartphones continues to remain strong as customers look for value and the channel remains cautious when it comes to stocking premium and ultra-premium devices.”
Although Apple continued to lead the smartphone market in terms of value, with 46.3pc share, it posted a decline in units with shipments of its iPhone 12 series being delayed well into Q4.
Huawei lost market share slightly as the tensions over its US trade ban continued to hamper performance.
Looking ahead, the GCC smartphone market is forecast to see QoQ unit growth of 6.5pc in Q4 2020.
“Q4 has traditionally been a strong quarter for the GCC smartphone market,” says Ramazan Yavuz, a senior research manager at IDC.
“Despite the ever-looming possibility of additional lockdowns and spikes in Covid-19 cases, an improvement in the market’s performance is expected towards the end of the year, particularly as countries begin to normalise travel and further positive news of a Covid-19 vaccine is released.”
Mr Yavuz expects brands like Apple and Samsung to do well in the upcoming quarters with newly released models in their portfolios.
avinash@gdn.com.bh
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