Local consumers were shopping for smartphones of Chinese brands at Dubai Festival City Mall.
(Photo/People's Daily)

Exhibitors were experiencing artificial intelligence products at a Chinese company's booth at the 44th Gulf Information Technology Exhibition (GITEX).
(Photo/People's Daily)

In recent years, the sales of Chinese-branded smartphones have been increasing in the Middle East region. Canalys, a Singapore-based market analyst firm, released data showing that in the second quarter of 2024, the smartphone shipments in the Middle East (excluding Turkey) amounted to 11.5 million, with a year-on-year increase of 20%; in the third quarter, the shipments in the region were 12.2 million, with a year-on-year increase of 2%. Thereinto, the three major Chinese brands, namely Glory, Transsion and Xiaomi have a market share of nearly 50% in the Middle East market. Arabian Gulf Business Monitor commented that Chinese brands have won the favor of users in the Middle East with better photo results, longer battery life and more affordable prices. 

Digital economy drives smartphone consumption

Recently, the annual Dubai Shopping Festival in the United Arab Emirates (the UAE) came to an end. Xiaomi, Honor, Huawei and other Chinese brands actively took advantage of business opportunities and cooperated with local distributors to popularize their various types of smartphones.

The Middle East is one of the regions with earliest deployment and commercialization of 5G in the world. In May last year, the UAE took the lead in announcing the launch of a nationwide 5G-A layout to further promote the development of mobile Internet. The Internet availability rate in Saudi Arabia has reached 99% by 2023, and 52.3% of the state's users use the Internet for up to 7 hours each day, with smartphones as the main way to access the Internet. The promotion of the new-generation communication technology has driven the development of software, Internet, e-commerce and other industries.

According to the UAE's "The National" newspaper, benefited from the demographic dividend as well as the policy and financial support, the scale of the digital economy in the Middle East is expected to reach $780 billion by 2030 with a growth rate exceeding the global average. Among them, the e-commerce market is growing at a significant rate, with an expected compound annual growth rate of 11% from 2022 to 2026, and the market size will run up to $57 billion in 2026. By then, the e-commerce economy will possess an 8.3% market share in regional commerce.

With the rapid development of the digital economy in the Middle East and the increasingly sophisticated digital infrastructure such as mobile Internet, the smartphone market in the region also warms up continuously. Reportedly, communication operators in the Middle East continue to promote the construction of 5G networks and relevant infrastructures, which will boost the sales of smartphones in the region in the long term. The growth prospects of the Middle East smartphone market are optimistic as the region's economy continues to improve, an article published by the Arabian media said.

China's "smart" manufacturing meets the needs of diverse markets

In Dubai Festival City Mall, a Chinese mobile phone experience store displayed a variety of smartphones with foldable screen, and consumers came to consult and experience these technologically advanced mobile phones from time to time. Azhad, a salesperson, introduced to the reporter that Honor's newly launched Magic V3 model featured long battery life, lightweight, and easy to carry, and also equipped with a translation function in 10 languages, including Chinese, English, Arabic and other languages. It is very convenient for residents working and living in Dubai, as well as for the foreign tourists. "This model of mobile phone also comes with a note-taking function that can transcribe the content of conference speeches in real time, making it a great help when people attending meetings," Azhad said. "As soon as this model hit the market, it became the best-selling model in our store."

In recent years, Chinese smartphone brands such as Xiaomi, Transsion and Glory have launched a number of cost-effective models and continuously expand their sales channels, realizing retail business growth in countries such as Saudi Arabia and Iraq. With good performance and stylish design, Chinese-branded smartphones have repeatedly appeared on the best-selling list of e-commerce platforms in the Middle East for many times.

"The Chinese smartphones always surprise users with stronger performance configurations from the perspective of customer needs," Ahmed Zarooni, a UAE technology expert and tech writer who has long been following about the smartphone market, told the newspaper that after more than 10 years of development, Chinese smartphones have become one of the mainstream brands leading the trend of global smart phone development. "The Middle Eastern consumers have increasingly chosen products that are suitable for themselves in terms of quality and functionality."

The popularity of Chinese-branded smartphones in the Middle East is attributed to Chinese companies taking the initiative to seek changes to better meet the diversified needs of local consumers. "We are transitioning from a device-centered service to a people-centered service." The relevant person in charge of Glory's Middle East and Africa Department told the reporter that after entering the Middle East market, the Chinese brands has continuously increased investment in research and development, improved their after-sales service, and provided users with better personalized experience through innovative products and services. It is reported that in the year 2024, the sales of Glory brand in the Middle East and Africa alone increased by 66% year-on-year, demonstrating the advantages of China's "smart" manufacturing.

Accelerate the use of artificial intelligence (AI) technology

Market analysts pointed out that the Middle East smartphone market is at the stage of rapid development, with huge potential that attracts the attention of many manufacturers around the world. For manufacturers who want to access to the Middle East market or expand their influence there, an in-depth understanding of local culture and consumer demand, and the flexible adjustment of marketing strategy will be the vital for success. Currently, with the rapid development of large-scale AI models, Chinese smartphone manufacturers are accelerating the application of AI technology on the smartphone side.

"Chinese brands are constantly innovating in the application of AI, and mobile phones are becoming good assistants in our life and work." Ahmad showed the reporter a Chinese-branded smartphone he was using, which was capable of accurate translation in multiple languages by using large-scale AI model applications. Ahmad also said he hopes that future AI smartphones will not only be able to set work schedules, but also realize accurate matchmaking, giving full play to the convenience that generative AI brings to people's lives.

According to the "AI Smartphone White Paper" released by OPPO, AI smartphones are characterized by the ability of utilizing computing power efficiently, perceiving the real world, autonomous learning and creation, etc. IDC, an international data company, estimates that global shipments of next-generation AI smartphones reached 170 million in 2024, accounting for approximately 15% of the overall smartphone shipments. Arabian media also believes that Chinese smartphone manufacturers are actively integrating generative AI functions into their products, including AI-generated portraits, offline virtual assistants and other features.

In the context of the vigorously development of AI industry in some Middle Eastern countries, this year, Chinese smartphone brands such as Honor, Xiaomi, and OPPO have successively released new AI smartphones in the Middle East since the beginning of this year, making efforts to expand the market. According to Ahmed, Chinese companies have unique advantages in smartphone product development and manufacturing, especially in the field of AI technology where breakthroughs are made continuously. All of these advantages will help the rapid development of Chinese smartphone brands, "I'm looking forward that the Chinese brands will take the lead in becoming the most familiar to consumers in the Middle East with AI smartphones."