Dubai: Shoppers in the UAE planning a smartphone upgrade are being wooed with some heavy price drops and aggressive buyback programmes as retailers hope to close out 2022 on a high.
“With the exception of Apple’s iPhone 14 models, which are still short of supply, we have seen price drops on the current flagship Samsung range and other brands,” said Rajat Asthana, Vice-President, Eros Group. “That’s because most of the in-demand models other than Apple will be introducing their next flagship at the 2023 Mobile World Congress (opening late February in Barcelona).
“Going by the sales during November and the first-half of December, talk about UAE consumers scaling down on their purchases - or turning cautious - is premature. The market hasn’t seen that happen, and our sales during November vouch for that.”
Smartphone sales have been the bellwether for how well - or otherwise - demand has been faring in the UAE gadget and appliance space. According to retailer sources, iPhone 14 prices are holding up because ‘there are still insufficient supplies reaching all retailers, online and offline, because of the production hits Apple has had’ in China. Instead, the heavy deals this DSF 2023-23 are happening on previous model-year iPhone versions. This is also the space where buybacks are seeing some heavy interest from shoppers, with discounts offered hitting 30-40 per cent depending on the category.
“The bigger deals are on the iPhone 13; as for the iPhone 14, there is a pool of Apple users who might now wait for the next smartphone launch rather than buy the current version,” said a retailer. “The iPhone 14 delays, much of it unforeseen, dented some of the demand during the holiday buying period.”
Solid on the comeback trail
Huawei continues to make comeback in the local smartphone space, according to Asthana. “The Huawei Mate 50 Pro is what’s helping the brand get back market share that had been hurt by the issues with the US,” he added. “And then there is the expanded product - tablets, notebooks, etc. - and app range Huawei has brought into the mix. It’s paying off.”
5G is finally kicking in
The market is near unanimous in saying that 2023 will be the year when 5G-enabled smartphone buying becomes the norm, as UAE’s mobile and data subscribers finally sign up for upgrades from 4G. Both e& by Etisalat and du have confirmed sharp take up rates for their 5G plans this year. Most of these are the early adopters who have finally got their hands on a 5G handset that can provide the true experience of what the telcos are offering on their 5G networks.
No more waiting
“It no longer makes sense for a shopper to pay for the latest 5G model - and then wait longer to sign up for a 5G plan,” said a retailer. “In 2023, those 5G handsets will be in sync with 5G plans. UAE mobile users are not going to wait.”
Stretch those payment plans
Apart from discounts and buybacks, retailers are also pushing hard on the payment plans, extending easy options stretching up to 12 months. “Where possible, interest-free payment schemes have become the default setting when it comes to convincing shoppers,” said Asthana. “Typically, the BNPL (Buy Now Pay Later) schemes tend to be paid off in 3-4 months, and online and brick-and-mortar retailers have come to realise how important they can be.
“There’re still only a handful of BNPL platforms operating in this market - it could take on more and give consumers more options to pick and choose from.”
Smartphone diversions from Europe
Through the final weeks of 2022, UAE and Gulf markets have been receiving a high share of diverted shipments from Europe of the latest smartphone models. That has to do with greatly reduced consumer demand in Europe, as consumers there fret over recession and an energy crisis rather than be thinking of a smartphone upgrade.
According to Rajat Asthana of Eros, “Beginning December, these shipment diversions are not happening at the same elevated levels we saw in October and November. It could be that stocks meant for those markets have depleted. But smartphone manufacturers are still offering heavy discounts for supplies here when big orders are placed.”
