After a slow start to the year, the Middle East smartened up. Q2 2025 saw smartphone shipments climb by 15% to hit 13.2 million units—the highest quarterly volume since Q2 2019. Demand came from value‑hunters, festive shopping, and solid economic momentum across the region.
Q2 Boom After Q1 Lull
2025 started on shaky ground. In Q1, the region’s smartphone shipments fell 4% to 11.7 million units. Saudi Arabia and Iraq saw declines, while the UAE remained largely steady. Qatar and Kuwait showed growth thanks to tourism and heavy promotional activity.
By Q2, the picture had flipped:
- Shipments rebounded 15% to 13.2 million units—the strongest performance globally.
- Value‑aware buyers, festive season incentives, and economic confidence drove that rebound.
Who’s Winning and Why
Q2 vendor breakdown:
| Vendor | Q2 2025 Shipments (m) | Market Share | YoY Growth |
|---|---|---|---|
| Samsung | 4.5 | 34% | +39% |
| Xiaomi | 2.3 | 17% | +1% |
| TRANSSION | 2.0 | 15% | +13% |
| HONOR | 1.3 | 10% | +95% |
| Apple | 1.1 | 8% | +1% |
| Others | 1.9 | 15% | –19% |
| Total | 13.2 | 100% | +15% |
Two standouts:
- HONOR almost doubled shipments compared to Q2 2024. Its AI‑rich devices, fast retail expansion (especially GCC), smart promotions, and a growing network of Experience Stores powered that growth.
- Samsung surged with its Galaxy A 4G models and steady demand for the Galaxy S25 and S24 FE. BNPL plans helped fuel quicker upgrades.
Why It Matters to the Region
The Middle East is becoming a go‑to region for smartphone launches and investment. Here’s why:
- Government visions, infrastructure projects, rising incomes, and broader consumer reach are raising the game.
- The UAE, Saudi Arabia, and Qatar are embedding AI into national strategies. AI in devices—think real‑time translation, personal recommendations, instant content tools—is working as a major magnet for buyers.
- Vendors that blend AI features with creator campaigns and local partnerships are building stronger loyalty.
FAQs
Why did Q1 lag behind Q2 in 2025?
In Q1, weak consumer demand, economic uncertainty, falling oil prices, and regional holidays, such as Ramadan, contributed to a decline in sales. Qatar and Kuwait did better thanks to tourism and aggressive promotions.
What made HONOR’s Q2 performance extraordinary?
HONOR nearly doubled its shipments compared to Q2 2024 by expanding retail presence in GCC, offering AI‑rich devices, running bold promotions, and increasing its Experience Stores.
Is AI a selling point in Middle East smartphones?
Absolutely. The UAE, Saudi Arabia, and Qatar are weaving AI into national plans. Features like real‑time translation and hyper-personalisation, plus creator campaigns, give AI‑equipped phones extra appeal.
