Region-wide smartphone shipments slumped by 19% in the second quarter of 2026, as vendors prioritise profit margins over volume, with premium demand bolstering average prices despite declining lower-end sales.
Smartphone shipments across the Middle East, excluding Turkey, fell sharply in the second quarter of 2026 as vendors continued to move away from a volume-led model. Omdia said shipments dropped 19% year on year to 10.6 million units, the steepest quarterly decline since the final quarter of 2025, amid higher prices, supply pressures and geopolitical uncertainty. Retailers also became more cautious about inventory, reflecting weaker consumer confidence and a less predictable demand environment.
The market’s weakness was concentrated at the lower end. Omdia said shipments of devices priced below $200 fell 42% from a year earlier, with Iraq among the hardest-hit markets as entry-level demand contracted. By contrast, devices above $300 grew 16%, suggesting that manufacturers are protecting margins by keeping mid-range and premium specifications intact rather than trimming features to defend share. Omdia said 256GB models accounted for 55% of shipments, underlining how storage expectations are being reset upwards across the region.
Premium demand also remained comparatively resilient. Shipments above $800 reached 1.9 million units, the highest second-quarter total recorded for that segment in the Middle East. Apple was the main driver of that growth, while financing schemes and stronger retail ecosystems supported spending in higher-income markets such as the United Arab Emirates and Qatar. In the UAE, the decline was limited to 7%, helped by instalment options from major retailers, while Qatar posted 2% growth on steadier economic conditions and sustained premium demand.
The shift in mix lifted the average selling price to $448, up 25% year on year and the highest second-quarter level on record, according to Omdia. Samsung remained the market leader with a 39% share despite a 7% shipment fall, while HONOR grew 2% to hold second place. TRANSSION and Xiaomi were hit hardest, with shipments down 40% and 50% respectively, as price-sensitive buyers retreated. Apple rose 1%, benefiting from premium brand strength, ecosystem loyalty and easier access to financing. Omdia said the wider strategy in the region now favours profitability and revenue over outright volume growth.
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