Regional smartphone shipments in the Middle East declined sharply in the second quarter of 2026, driven by higher component costs, softer consumer demand, and a strategic shift towards premium devices, with average selling prices reaching record levels.
Middle East smartphone shipments, excluding Turkey, fell sharply in the second quarter of 2026 as vendors absorbed higher component costs and softer consumer demand rather than chasing volume. Omdia said shipments dropped 19% year on year to 10.6 million units, marking the region’s steepest quarterly decline since the final quarter of 2025. The setback followed a first quarter in which the market had already weakened, and came after a stronger finish to 2025, when the region had briefly rebounded on year-end buying and premium device upgrades.
The clearest pressure came from the entry-level market. Omdia said shipments of phones priced below $200 fell 42% from a year earlier, while markets with heavy exposure to low-cost devices saw some of the steepest declines. Iraq was one of the weakest markets, with shipments down 36%. By contrast, devices priced above $300 rose 16%, with 256GB models accounting for 55% of shipments, underscoring how manufacturers are shifting the region towards higher specifications rather than discount-led growth.
Premium demand remained comparatively resilient. Omdia said shipments of devices above $800 reached 1.9 million units, the highest second-quarter total on record for the region. Apple was a major driver of that performance, supported by ecosystem loyalty and access to financing. The United Arab Emirates and Qatar were among the strongest markets for high-end devices. In the UAE, instalment plans available through large retailers and online channels helped soften the decline to 7%, while Qatar posted 2% growth on steadier economic conditions and durable premium demand.
The market shift pushed average selling prices to a record for the quarter. Omdia said the regional ASP climbed 25% year on year to $448 as vendors protected margins and passed on cost inflation. That follows reports earlier in the year that memory shortages and broader supply constraints were squeezing promotional activity and raising prices across both new and older device lines. Industry watchers had already warned that these pressures could restrain growth into 2026, even after periods of strong demand in late 2025.
Vendor rankings reflected the same split between scale and profitability. Samsung kept first place with 39% of the market despite a 7% drop in shipments, balancing its Galaxy A series against more profitable Galaxy S models. HONOR held second position and grew 2%. TRANSSION and Xiaomi, which rely more heavily on the entry-level segment, suffered steeper falls of 40% and 50% respectively. Apple, meanwhile, rose 1% as premium demand and financing options offset the broader slowdown.
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