Saudi Arabia registers rise in Q2 smartphone shipments: IDC

Smartphone shipments to Saudi Arabia rose 1.7 percent year-on-year (YoY) in Q2 2018, driven by the Kingdom's new import regulation, International Data Corporation (IDC) said in a recent report.

The shipments were up 0.9 percent quarter-on-quarter (QoQ) in Q2 2018, the first time in four quarters, it added.

"This growth primarily stems from the implementation of a new import policy that requires all phones to carry IECEE certification," said Kafil Merchant, a research analyst at IDC.

"A consequence of this policy is that there has been a significant reduction in gray shipments to the Kingdom, with a subsequent increase in official shipments to meet demand."

He, however, warned that with the introduction of a dependent tax causing millions of expats to make plans to leave the country, vendors targeting the Saudi market would continue to face a significant challenge.

In the UAE, smartphone shipments were down 10.9 percent QoQ in the second quarter 2018, with the country's overall mobile market declining 8.8 percent. Overall, shipments to the region fell 9.9 percent YoY and 2.1 percent QoQ to total 5.8 million units.

Meanwhile, Samsung maintained its lead in Q2 with 34.2 percent share as the most sought-after brand. Apple and Huawei followed with respective shares of 24.3 percent and 16.5 percent.

Looking ahead, IDC said it expects 2018 to be a "very tough year for the industry, with overall mobile phone shipments to the GCC forecast to decline 12.9 percent YoY."

"Given the prevailing market challenges, it will take some time for the market to adjust and for consumer behavior to stabilize," the consultancy noted.