Global tech giants including Samsung Electronics, Apple, Sony and Huawei are doubling up their efforts to jump into the Middle East market, with the smartphone sales slowing worldwide, Market watchers say this is due to the demand for high-end smartphones and consumer electronics has been fast rising in the region in recent years.
According to data released by the research firm IDC, the smartphone supply has surged 32 percent on-year in the six Gulf nations including Kuwait, Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates last year. Considering that the global smartphone sales is hovering around only 10 percent level, the Middle East market has seen a rapid growth. Also, compared to China where the penetration rate of smartphone already reaches 90 percent, that of Middle Eastern nations still comes to 50 percent, leaving much room for further growth.
Samsung Electronics, which has the largest market share in the Middle East, chose the region as its first destination for the launch of its flagship smartphone Galaxy S6. According to Counterpoint Research, Samsung accounts for 31 percent the Middle East and African regions last year.
Apple is also reportedly set to open its largest Apple Store in Dubai’s shopping mall in August, according to local media outlet. The store, which is to be located along with luxury brand shops and a five star hotel, will be the first Apple Store in the Middle East. It will be 25 percent larger than the globally largest Apple Store located in London’s Covent Garden.
The Middle East has not been the main target for Apple so far but it began to take note of it as a strategic market with turning its eyes into the Asian region recently. Apple is particularly paying attention to the United Arab Emirates, which has a number of potential high-end consumers. It included the nation to launch its flagship products iPhone 6 and Apple Watch.
Other smartphone makers such as Huawei and Sony are also following suit to jump into the Middle East.
China’s biggest smartphone maker Huawei is set to roll out its flagship smartphone Honor 6 Plus in the market soon. Huawei is currently ranked the second in the Middle East following Samsung Electronics.
“We are going to compete head-to-head with iPhone 6 Plus (in the market),” said vice president of Huwai’s online sales division.
Sony also recently unveiled its premium smartphones Xperia Z4 and M4 Aqua in the Middle East.
“The Middle East is becoming a new promising market with the demand on both premium and low-end gadgets is fast rising,” market watchers said.
By Chun Go-eun
