Economic challenges cause smartphone decline in Nigeria, other
Smartphone shipments to the Middle East and Africa region fell 7.8% year-on-year to 38 million units in the second quarter of 2022.
That’s according to a report from Counterpoint’s market watch service. The report found that worsening macro headwinds on economic and geopolitical fronts have undermined consumer demand as well as brand enthusiasm to expand their presence in the region.
Commenting, Senior Analyst Yang Wang said, “The biggest drag on the market was, unsurprisingly, macroeconomic issues. Inflation induced by food and fuel shortages has dampened consumer demand while falling national currencies against the US dollar have reduced consumer purchasing power.
The report also revealed that some governments in the region have also imposed food export bans or import bans on “non-essential” goods to stem the outflow of foreign currency reserves. He also added that taxes on electronic products have also been increased.
The report said: “Given the pessimistic global macroeconomic sentiment, we have also seen some brands become cautious about business in the region. Difficulties elsewhere have prompted brands to rationalize their budgets and activities, which have been redirected to more strategic markets and regions.
“This meant that incentives to push brand penetration in MEA were reduced, forcing distributors and resellers to raise prices to defend their margins. These headwinds have resulted in lower shipments for many original equipment manufacturers.
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