Core Insights - The smartphone shipment volume in the Middle East and Africa is expected to grow by 7% year-on-year in Q1 2025, marking the first positive growth after two consecutive quarters of decline [1] - Strong demand during Ramadan and Easter, expanded device supply, and moderate inflation have driven consumer spending in the region [1] Market Dynamics - The smartphone market in the Middle East and Africa is entering an adjustment phase in 2024, with brands focusing on clearing old inventory and reducing new product launches, leading to a decrease in active brands [6] - Despite the adjustment, the market is expected to see a strong recovery in early 2025 due to improved supply and the release of pent-up demand, particularly for budget models under $100 [6] - High-end smartphones priced above $800 continue to show robust growth, indicating a persistent trend towards premiumization [6] 5G Adoption - The 5G adoption rate in the region has slightly increased, reaching a market share of 33% in Q1 2025, with brands like Samsung, Xiaomi, and HONOR leading the growth in the $400 to $499 price segment [6] - The reduction in 5G component costs and significant investments from African operators, along with government digitalization efforts, have contributed to the proliferation of 4G and 5G infrastructure [6] Display Technology - The penetration rate of OLED displays reached 42% in Q1 2025, driven by consumer demand for vibrant colors, better contrast, and energy efficiency [7] - Smartphones with screens larger than 6.5 inches are increasingly popular, as users prefer high-resolution displays for enhanced viewing experiences [7] Brand Performance - Samsung maintained its market leadership with a 15% year-on-year increase in shipments, streamlining its product offerings from 103 to 76 models to focus on higher quality [12] - Transsion holds a 32% market share in the region, up from 29% last year, with TECNO achieving a 31% growth rate due to strong promotions in the mid-range market [12] - Xiaomi's shipments decreased by 2%, but its LTE smartphones saw a 27% year-on-year growth, primarily in the low-end market [13] - Apple experienced a 4% increase in shipments, with its market share rising to 6%, driven by the strong performance of the new iPhone 16e in price-sensitive markets [13]