Smartphone shipments across the Middle East and Africa (MEA) dropped 7% year on year in the first quarter of 2026.
Revealed in Counterpoint’s latest report, this is the first decline after a strong run in 2025, coming down mainly to higher device prices, supply pressure in entry-level phones, and instability in parts of the Middle East.
The toughest hit came from the lowest price segment where phones priced between $50 and $99 fell 41% compared to last year.
Many of these devices were harder to find in stores, especially in parts of Africa and the Middle East where supply chains have been strained.
Prices rose across the board due to a global memory shortage affecting DRAM and NAND chips. That pushed up costs of production and fed directly into retail prices.
At the same time, conflict in parts of the Middle East raised shipping costs and disrupted normal distribution routes. Both factors combined to weaken demand in price-sensitive markets.
Samsung was the largest player in the region and grew 19% year on year. The company held steady because it had stronger inventory levels and a wider mix of premium devices. Its newer high-end models also supported sales, helping it avoid the worst of the supply pressure affecting other brands.
Apple also recorded strong growth, with iPhone shipments up 33% year on year. Its share in the region rose to 8%, up from 6% a year earlier. Demand was sustained in premium markets, particularly in the Gulf states where higher-income consumers continued to upgrade.
HONOR posted the most striking increase, growing 154% year on year. The jump reveals a low base last year, but also stronger positioning in the premium mid-range segment, especially in GCC markets where demand for higher-spec devices has been stable.
In contrast, Transsion and Xiaomi faced tougher conditions. Both brands had limited product availability in parts of the Middle East. In some retail channels, stock shortages were visible, which directly affected sales volumes.
Despite the overall decline, the MEA region showed stronger movement towards higher-end devices, with 5G smartphone shipments rising 42% year on year, and AI-capable smartphones also increased by 64%. Although most of that growth stayed concentrated in devices priced above $400.
This has not offset the weakness in the entry-level segment. Demand in lower-income markets has reduced as fuel prices, logistics costs, and job cuts in parts of the Gulf affect spending power. Buyers are becoming more cautious, and upgrades are happening less frequently.
The outlook for the next quarter is weak. Analysts expect further pressure on shipments in Q2 2026, with fewer promotional periods and challenges in both supply chains and regional conditions.
