XIAOMI(HK:01810) Zhi Tong Cai Jing·2025-05-20 06:23Core Insights - The Middle East smartphone market experienced a 4% year-on-year decline in Q1 2025, with shipments totaling 11.7 million units, attributed to weakened retail demand and cautious consumer spending [1][7] - Despite a strong recovery in 2024, economic uncertainties and declining oil prices have negatively impacted market confidence [1] - High-end smartphone demand is driving an increase in average selling prices (ASP), with premium models priced over $600 seeing a 17% year-on-year growth [4] Market Performance - Saudi Arabia maintained the largest market share at 26%, but saw a 12% decline in shipments due to reduced consumer demand during Ramadan [3] - Iraq's market declined by 11%, influenced by economic pressures from falling oil prices, leading consumers to prioritize essential goods [3] - The UAE experienced a slight decline of 1%, supported by active retail activities during Eid and an increase in tourist numbers [3] - Kuwait and Qatar showed positive growth, with Kuwait achieving a 13% increase during the Hala Festival and Qatar leading the region with a 16% growth due to a booming luxury retail market [3] Company Performance - Samsung led the market with a 19% year-on-year increase in high-end smartphone shipments, driven by strong demand for the Galaxy A series and Galaxy S25 Ultra [4] - Transsion, while still leading the budget segment with a 43% share, saw a decline from 51% year-on-year, facing competition from value-focused brands [4] - Xiaomi's shipments fell by 31% due to inventory adjustments and a cautious strategy, as the brand recalibrates its market priorities [4][5] - Apple achieved a 10% year-on-year growth, benefiting from the popularity of the iPhone 16 and improved retail accessibility [5] Market Trends - The shift towards high-end smartphones is evident, with AI-driven innovations becoming a key focus, as 53% of smartphone shipments in Q1 2025 were AI-enabled [6] - The market is evolving towards a more experience-oriented approach, necessitating brands to invest in ecosystem innovation and high-end retail experiences [6]