Counterpoint Research·2025-05-29 02:32Core Viewpoint - The smartphone market in the Middle East and Africa is experiencing a recovery with a 7% year-on-year growth in Q1 2025, driven by strong holiday demand, improved supply, and moderate inflation [1][4]. Market Dynamics - In 2024, the smartphone market in the region is expected to enter an adjustment phase as brands focus on clearing old inventory and reducing new product launches, leading to a decrease in active brands [2]. - The recovery in early 2025 is attributed to supply improvements and the release of pent-up demand, particularly for budget models priced under $100 [2][4]. Smartphone Shipment Growth - The growth in smartphone shipments is primarily seen in the low-end market, which is the fastest-growing segment due to increased competition [4]. - The penetration rates for 5G and OLED technologies reached 33% and 42%, respectively, supported by network deployments and the introduction of popular large-screen Android devices [4][5]. Brand Performance - Samsung maintained its market leadership with a 15% year-on-year increase in shipments, focusing on fewer, higher-quality models [9]. - Transsion holds a 32% market share, up from 29% the previous year, with TECNO leading in the mid-range market due to strong promotions [9]. - Xiaomi's shipments decreased by 2%, but its LTE smartphones saw a 27% increase, indicating a competitive push in the low-end market [10]. - Apple experienced a 4% increase in shipments, driven by the launch of the iPhone 16e, which performed well in price-sensitive markets [10].