By Temitayo Jaiyeola
Smartphone shipments to the Middle East and Africa region fell to a seven-year low in 2022 due to high inflation and currency depreciation according to Counterpoint Research Market Monitor.
Shipments declined by 12.1 per cent year-on-year to 148 million units in 2022 despite a bright start to the year. However, the rise in energy and agricultural goods prices caused by the Ukraine war dampened consumer sentiment in the region, and macroeconomic situation gradually worsened as the year went on.
According to the data insight monitor, in the fourth quarter of 2022, smartphone shipments dropped to 18.4 per cent y-o-y, slightly better than the 20.4 per cent decline recorded in the third quarter of 2022.
It said, “Consumer sentiment may have picked up marginally as the inflationary pressure and foreign currency headwinds receded. Still, the market environment remained very challenging.”
Commenting on the decline, Senior Analyst, CRMM, Yang Wang, said, “The MEA smartphone market closed the year with another tough quarter.
“Much of the difficulties, such as high inflation rates, energy and food prices, and depreciating domestic currencies against the US dollar, were caused by factors outside of the control of market participants. With the drop in consumer sentiment, OEMs were put under enormous pressure and had to take drastic measures such as destocking, cutting marketing and channel spending, and taking a very careful approach to pricing.”
Following the launch of 5G in key regional markets like Nigeria, there was an uptick in 5G smartphone shipments. 5G shipments grew by 47 per cent to reach 18 per cent of overall smartphone shipment to the region.
The firm added, “One of the spotlights in the MEA smartphone market in 2022 was the growth of the 5G segment. 5G smartphone shipments grew 47 per cent to reach an 18 per cent share of the overall shipments against our forecast of 16.5 per cent at the beginning of 2022.
“While 5G networks are only available in the GCC countries and certain pockets of Africa’s urban areas, the enthusiasm for 5G devices has been noted across the largest markets.”
The firm noted that the prices of 5G smartphones were falling due to the availability of affordable models.
Source: The Punch
