Samsung leads Middle East & Africa's smartphone market, Xiaomi gains
CNBC Africa is joined by Yang Wang, Senior Research Analyst, Counterpoint Research for this discussion.
Thu, 29 Aug 2024 10:48:12 GMT
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AI Generated Summary
- Samsung reclaims its top position in the smartphone market in the Middle East and Africa region by launching new products, offering discounts, and expanding presence through local partnerships.
- Xiaomi and other Chinese OEMs challenge Transient's dominance with strategic pricing, product expansion, and robust aftermarket support, leading to significant market share growth.
- The rapid acceleration of 5G infrastructure build-out across the continent heralds a new era for enhanced connectivity, with 5G smartphone adoption expected to outpace 5G connectivity adoption in the coming years.
In the fast-paced world of smartphones, the battle for market dominance is fierce. Quarter 2 of 2024 witnessed a 3% year-on-year increase in smartphone shipments in the Middle East and Africa region, with Samsung holding onto its top position. However, Xiaomi is making significant strides with strong growth, while Transient remains the largest Original Equipment Manufacturer (OEM) facing mounting competition from other Chinese brands in the lower-mid segment. While LTE technology still rules the roost, the adoption of 5G connectivity is rapidly gaining momentum.
Samsung, a long-standing player in the Middle East and Africa region, faced challenges in recent years due to supply chain issues and the emergence of strong competition from Chinese OEMs such as Transient, Xiaomi, OPPO Group, and Honor. Despite this, Samsung managed to reclaim its market share in the most recent quarter by launching products with better specifications, especially in the middle to lower-end segment with the Galaxy A05 and A15 series. The brand focused on offering discounts, trade-in programs, and forging partnerships with local retailers to make its devices more widely available across the continent.
Chinese producers, particularly Xiaomi and Transient, have been strategically capitalizing on gaps in the market to increase their sales and expand their market share. Transient, traditionally the dominant player in the region, faced challenges from Xiaomi and OPPO Group in the mid to lower segments. Xiaomi, in particular, experienced a remarkable 67% growth in the last quarter, driven by its Redmi series that offers value-for-money products. The brand focused on expanding its product availability, building strong distribution channels, and providing robust aftermarket support, marking its comeback as a formidable player in the market and posing a significant threat to Transient's dominance.
The advent of 5G technology is a game-changer in the smartphone market, especially in regions like South Africa where there is a pressing need for enhanced connectivity. While LTE 4G still dominates the landscape, the build-out of 5G infrastructure is rapidly accelerating across the continent. Leading carriers such as Vodafone, MTN, and Orange are investing heavily in expanding their 5G networks, with projections extending into the next decade. The transition to 5G connectivity will be gradual, with urban centers and select countries initially benefiting from the technology. However, the adoption of 5G smartphones is expected to outpace 5G connectivity adoption, driven by advanced features, improved specifications, and a complete digital experience for users.
As the smartphone market in the Middle East and Africa region continues to evolve, consumers can expect a plethora of choices, innovative devices, and competitive pricing. The intense competition among industry players, coupled with the rapid evolution of 5G technology, promises a dynamic landscape that will empower users with enhanced digital experiences and connectivity.