Smartphones: UAE shoppers go for 2024 models - 20%-30% price drops are helping

Demand for discounted, mid-priced models boost UAE. Gulf smartphone sales

Last updated:
Manoj Nair, Business Editor
3 MIN READ
The previous year smartphone models have been doing extremely well in recent weeks - and there have been some price drops too.
The previous year smartphone models have been doing extremely well in recent weeks - and there have been some price drops too.
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Dubai: Smartphone sales in the UAE are starting to pick up after a slow start to the year, with recent top-of-the-line launches from Samsung, Honor and Huawei scoring well.

And September will set the ball rolling for the Apple iPhone 17, with the hope that it will prove an instant hit with consumers in the UAE and GCC rather than have the slow take-off the iPhone 16 had.  

But for now, another category of smartphones are doing extremely well in the UAE – the previous generation models such as the iPhone 15 and the Samsung Galaxy S24, helped by price drops and promotions, especially on online channels.

With the 'Back To School' promotions still on, retailers are hoping that parents will pick up more of the past model year handsets and keep this momentum going.  

So, the UAE smartphone demand is now seeing two trends simultaneously.

30% price gap

“We are still seeing increased demand for flagship devices launched in 2025 addressed at the premium end of the smartphone market,” said Rajat Asthana, CEO of Eros Group.

“The last few model launches have been aggressively attacking this lucrative segment.” (Samsung got in not just its S25 but also had the latest flip and fold models along with an ultra-slim Edge.)

“The launch of Samsung Galaxy Z7 Fold, Huawei’s Pura 80 and Honor’s Maic V5 foldables have all been targeting the premium end with vastly improved AI features,” said Asthana.

Now, the other category picking up serious sales volumes are the previous model year versions, helped by the20% to  30% price difference with the new launches.

“This way the major smartphone brands ensure that the new and earlier series have enough takers.”

This applies to the current iPhone 16 and iPhone 15 models too, with retailers targeting the Back To School buys with easy installment plans and accessory discounts.  (Listed prices show iPhone 15 versions going for Dh2,499-Dh2,999 on average.)

This demand for previous year models should continue into the coming weeks, with analysts saying that it’s unlikely new model launches will break that demand. There is a growing number of consumers who have been cutting into any of their discretionary spending. “This is why a lot of the Back To School offers are also giving visibility to previous-year smartphones, laptops and tablets,” said a retailer. 

Making up for tough Q1-2025

Retailers will take any sales improvement after an extremely difficult January to March demand patterns for tech gadgets. Some of the new model year handset purchases were delayed, and it was only by April-May that sales improved.   

The latest data from the consultancy Canalys show the Middle East shipments (excluding those to Turkey) grew 15% to 13.2 million units in Q2-2025.

This made it ‘strongest-growing region worldwide’.

“The rebound was powered by value-conscious buyers, festive season spending (during Eid in April) and strong economic momentum,” the report adds.

In fact, Q2-25 smartphone volumes were the best since Q2-2019. Again, a lot had to do with demand for mid-priced models.

 According to Manish Pravinkumar, Principal Analyst at Canalys, demand was ‘fueled by channel replenishment and vendors refreshing their mid-tier portfolios.

“With improving political stability, a steady influx of travelers and its role as a global commercial crossroads, the region is cementing its status as a launch pad for success both locally and internationally.”

Samsung, Honor lead on shipments

Samsung and Honor had 'exceptionally strong performances' in Q2, according to Canalys' data. Both hit high double-digit growth rates.

“Samsung benefits across the region, particularly from more targeted use of its entry-level Galaxy A series 4G models," said Manish Pravinkumar of Canalys.

"The enduring demand for the Galaxy S25 series and S24 FE is being fueled by buy-now-pay-later options and faster refresh cycles driven by an increased desire for consumers to update.

"Honor nearly doubled its shipments compared with Q2 2024, with the GCC emerging as a core growth market

Manoj Nair
Manoj NairBusiness Editor
Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.

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