Saudi shoppers are spending less on new smartphones - UAE is the exception

Dubai: Are smartphone shoppers in Saudi Arabia and the UAE finding that new handset prices are getting too high?

Based on smartphone shipments into the region over the first three months of 2025, it does seem so.

Saudi Arabia took in 12% less smartphone shipments during the period, while those to the UAE dropped by a more muted 1%, according to data from Canalys, the research firm.

When it comes to the UAE, “The relatively resilient economy - bolstered by robust retail activity during Eid al-Fitr celebrations (in early April) and stronger tourist inflows, helped sustain demand,” says the report.

But when it comes to Saudi Arabia, there was a notable drop in smartphone demand during the Ramadan phase as consumers shifted to other ‘lifestyle segments’ like travel, food and upgrades to their vehicles. This mean less discretionary spending on new smartphones.

In the last two years, the Gulf markets led by UAE and Saudi Arabia have propelled smartphone sales, as more brands jazzed up their AI offerings and topped up their cameras.

In the first five months, there were a raft of new flagship smartphone launches in the UAE and Gulf, the latest being the super-slim Samsung S25 Edge.

The premium end of the handset market is where the real action is - helped in no small measure by the topping up of the AI features.

“Amid the overall regional market decline, shipments in the $600+ segment grew by 17% year on year in Q1-2025," said Manish Pravinkumar, Principal Analyst at Canalys (now part of Omdia).

"Samsung led the pack with an impressive 19% growth, driven by sustained demand for its Galaxy A-series and the flagship Galaxy S25 Ultra, which alone accounted for 9% of its total shipments.

"The brand’s deepening strategic alliance with e& in markets like UAE is set to reshape the smart device ecosystem, reinforcing its dominance in the premium Android space.” 

Huawei had the triple-fold to show off and Honor is bringing out its latest to the line-up with the 400.

“As AI-powered innovation accelerates, with 53% of Q1 smartphone shipments being AI-capable, the Middle East is shifting toward smarter, experience-led devices," said Pravinkumar.

"Despite a soft start to 2025, demand for premium features and mid-range strength signals steady growth. The Middle East is emerging as a key hub in the global smartphone value chain.

"Amid evolving trade dynamics and rising retail costs in markets like Saudi Arabia and the UAE, brands must invest in ecosystem innovation, premium retail experiences and deeper partnerships. The convergence of AI, content and connected hardware will shape the next chapter, and those leading with value and experience will define the region’s digital future.”