the middle east smartphone market: ready to lead the world
TRANSCRIPT
The Middle East Smartphone Market: ready to leadthe world
amgoo.com /blog/the-middle-east-smartphone-market-ready-to-lead-the-world-
Apr 17, 2014 4:49:00 PM
As the smartphone markets of the developed world are becoming saturated, the Middle East is turning
out to be an important market to handset makers as it encompasses countries with high disposableincomes and a hunger for the latest mobile technologies. Despite the fact that India and China aretraditionally considered smartphone markets with the most potential, The Middle East has activelyjoined in the race and is becoming the next big market for mobile applications and the region isexpected to account for the second-largest mobile phone population of any region in the world.
The middle east's smartphone market is heating up
Smartphones now account for nearly two out of every five phones in the Middle East, according to thelatest research from International Data Corporation (IDC), smartphone use in the region will nearlydouble this year to 112.2 million, up from 67 million last year, while penetration of smartphones amongthe population as a whole will increase from 5.1% to 8.3%. By 2015, Smartphone penetration in theMiddle East region is projected to grow by up to 39%, which means the region still has room to grow.
Networking giant Cisco’s recent survey also reveals that the Middle East is seeing massive growth inthe sales and penetration level of smartphones in the market. Achieving a level of 73.8%, UAE leadsthe Middle East smartphone penetration rate, leading all other countries in the world. Saudi Arabiafollowed close behind at 72.8% - meaning nearly three-quarters of people in these two countries areusing a smartphone. Although smartphone penetration has seen rapid growth, it is still expected toincrease by 39% in the Middle East by 2015.
For the time being, Android rules the roost in terms of operating system market share, with 60% shareof overall smartphone volume,with Samsung holding nearly half of the smartphone market.
Out with the old and in with the new
The region’s extremely young demographic (44% of the regional population are under 20 years old) isundoubtedly a key driving factor for the increasing levels of smartphone adoption. 72% of smartphoneowners throughout Middle East are less than 34 years old and smartphones, instead of laptops, are themost desired device among them as they are seen as the most versatile and compact. And end-usersthere prefer using their handheld devices to access e-mails and chat. If you’re eying the Middle Eastsmartphone market this growing youth market is definitely something you don’t want to miss. Youngergenerations tend to be technically savvy and stay more connected, so it can be a good solution todistribute phones with customized and interactive content that cater to their social connection needs inthe region. A price-friendly gadget with many functions, an innovative design and appealing color whichpromises good value for the money is also expected to win a big chunk of the youth market. Last butnot least, data packages with attractive price offer are an essential way to grab the market share aswell.
In terms of mobile behavior, The Middle East has the world’s most active and dedicated smartphoneusers. In countries such as the UAE, Saudi Arabia and Egypt smartphone owners typically spendaround an hour a day on their devices. Ipsos reported that 25% of smartphone owners in the UAE,Saudi, Lebanon and Egypt consume media content via their mobile every day. This is the second-highest media platform after TV. The growing appetite for smartphones, YouTube and social media inthe region has created a highly dynamic and rapidly evolving digital environment, which in turn will beexpected to further drive smartphone adoption. The increasing number of consumers shopping onlinewill further boost the region’s online commerce and the retail industry. More mobile payment optionscan also be made available from the operators such as direct carrier billing to drive the trend.
As prices fall and cheaper handsets continue to come on to the market, countries such as Egypt -home to 80 million people - will be able to embrace the benefits of smartphone technology as neverbefore. And vendors are expected to increase their marketing activities throughout the region andexpand their distribution networks.
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