During the first quarter of 2026, smartphone shipments in the Middle East and Africa experienced a 7% decline compared to the previous year, halting a period of growth observed last year. The drop was most pronounced in entry-level smartphones, as rising component and transport costs affected retail prices, leading to decreased demand in price-sensitive markets. Specifically, shipments of smartphones priced between $50 and $99 plummeted by 41%, indicating increased price sensitivity among consumers in this segment.
Despite the overall downturn, Samsung bucked the trend, increasing its shipments by 19% and maintaining its leading position in the market, thanks to a diverse product range and strong availability. Conversely, Chinese brands like Xiaomi and Transsion faced supply constraints, impacting their market presence, particularly in Africa, where Transsion has significant stakes.
Nevertheless, the region saw growth in certain areas. Shipments of 5G-enabled smartphones rose by 42% as network coverage expanded, and AI-enabled devices saw a 64% increase, driven by demand for advanced features in higher-priced models. HONOR also achieved significant growth by targeting premium customers, especially in the Gulf region.
Looking forward, challenges such as high component costs and weak consumer purchasing power are expected to persist, potentially leading to further declines unless a major demand driver emerges. The market is increasingly divided between consumers willing to invest in premium devices and those delaying purchases, with manufacturers in the budget segment needing to navigate component pricing and supply challenges carefully.
