Business

Gulf Tech Market: U.S. Giants Struggle as Asian Brands Thrive

By Buthayna El Haggar

The Gulf region’s tech market is experiencing significant shifts. Asian tech brands like Samsung, Lenovo, and Xiaomi are outperforming U.S. companies in the Gulf’s competitive tech market.

While Apple, HP, and Dell have seen a decline in market share, it’s not due to a boycott of American brands but rather an increasing preference for rivals.

According to the International Data Corporation (IDC), the Gulf’s tech-savvy, young consumers are fueling this competitive landscape.

via Canalys

According to AGBI, Samsung continues to lead the Gulf smartphone market, holding 40.1% of shipments from January to September 2024. This is a slight dip from 40.6% in the same period in 2023.

IDC analyst Akash Balachandran credits Samsung’s success to its strong presence in the high-end, ultra-premium smartphone segment, which appeals to consumers looking for top-tier devices priced over $1,600.

Rising Stars: Xiaomi and Transsion’s Success

via Canalys

The Chinese brands Xiaomi and Transsion are seeing significant growth. Both companies have capitalized on the demand for budget-friendly smartphones priced under $100.

This strategic move has helped them increase their market share, contributing to an overall 8.9% year-on-year rise in smartphone shipments in the first three quarters of 2024.

Lenovo Tops the PC Market in the GCC

via Aletihad

The PC market in the Gulf has seen Lenovo outperform its American and Taiwanese rivals.

The company now leads the desktop and laptop market in the GCC, with HP, Dell, and Apple experiencing a decline. According to IDC’s Isaac Ngatia, HP has been affected by shifts in spending priorities in Saudi Arabia, while Dell’s focus on the business-to-business market has not fully offset the declining demand for desktops.

Apple’s Strong Performance in Tablets

via AGBI

Apple’s iPads continue to hold a strong position in the Gulf, accounting for 31.6% of tablet shipments from January to September 2024. However, its main competitor, Samsung, has seen its share decrease.

The Chinese brand Honor has emerged as a key player, capturing 11% of the tablet market after starting with zero just a year ago.

The Gulf tech market reflects a dynamic and evolving landscape where consumer preferences for diverse offerings and competitive pricing have reshaped market dynamics.

While established U.S. brands face challenges, Asian companies are leveraging strategic pricing and innovative product lines to strengthen their foothold. This trend highlights the growing influence of Asian brands in the region, driven by the demand for both high-end and budget-friendly technology solutions.

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Buthayna El Haggar

A curious wanderer and neurodivergent polymath from Egypt, Buthayna is a writer, translator, and researcher passionate about storytelling through performance arts and expressive writing. A biophilic at heart, she finds solace in the sensory joys of food and music, often escaping into realms of imagination through films and literature. She is multilingual and she treasures authentic connections with those who seek growth and self-awareness, even as she often prefers the company of solitude.

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