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MEA Smartphones Market Analysis

The Middle East and Africa Smartphones Market is expected to reach a CAGR of 9% during the forecast period (2021 - 2026). The regional smartphone market is also anticipated to witness some disruptions owing to the emergence of COVID-19. Supply constraints are likely to hamper the growth in the region owing to chipset and component shortages across most of the smartphone brands in the first half of the year. However, with the supply chain returning to normal and with the vaccine rollout anticipated to significantly reduce the possibility of additional lockdowns and surge in COVID-19 cases, the market is expected to witness the return of growth towards the second half of the year.

• Moreover, as of Oct 2020, Chinese smartphone manufacturer Realme was aiming to become one of the prominent player in the GCC countries within the next two years. The company entered the GCC region in January but had to slow down its marketing efforts owing to Covid-19 and lockdowns. The company has launched nine of its models in the market and will be focusing on both online as well as offline channel. The product prices range between AED 399 and AED 1,199.
• 5G is one of the major drivers for the growth of smartphones market in the region. According to Ericsson Mobility Report, in the Middle East & Africa, the number of subscribers for 5G services in the MEA region may reach 60 million by 2024, representing about 3% of all mobile subscriptions in the region. GSMA also estimates that there may be around 50 million 5G connections across MENA, of which 20 million connections could be in the Arab States alone, by 2025.
• Hence, the development of 5G technologies and the increasing usage of mobile internet is expected to create significant demand for advanced smartphones in these regions. Vodacom, in May 2020, switched on its live 5G mobile network in Johannesburg, Pretoria and Cape Town, with further rollouts planned for other parts of the country. The company also offered 5G enabled devices, such as LG V50 5G smartphone, and Huawei 5G CPE PRO FWA router, which customers could use to experience the 5G network within the coverage area of the 20 live sites.
• Thus, telecoms in the region are partnering with device providers to encourage and reduce the friction in the usage of 5G technology. Further, government policies to enable device manufacturers to manufacture affordable 5G devices will also facilitate faster 5G adoption in the region.

MEA Smartphones Industry Segmentation

Smartphones, with strong hardware capabilities, extensive mobile operating systems, facilitating wider software applications, internet, and multimedia functionality (music, videos, and gaming), alongside core phone functions such as voice calls and text messaging, are considered in the scope. Smartphones used for industrial purposes or otherwise known as rugged phones are not considered in the scope. The market study is focused on the trends affecting the market in the major countries in the region. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry. The study tracks the impact of COVID-19 on the overall smartphone industry and its performance.