Why the Middle East Just Had Its Biggest Smartphone Quarter in Six Years

The way we shop tells its own story. So when people start buying again, especially after months of cautious spending, it says something bigger about confidence, income, and where the market is heading. That’s the story playing out in the Middle East’s smartphone rebound.

The Middle East just pulled off a surprise comeback in smartphones. While much of the world is stuck in flat or falling sales as a result of global political tensions, the region clocked a 15% year-on-year jump in Q2 2025 according to Canalys, reaching 13.2 million units, its best quarter since 2019.

The surge traces back to a mix of budget-friendly buying, festive season demand, and resilient economies helped push shipments higher at a time when other regions are still searching for momentum.

Value Hunters and Festive Shoppers

For most buyers across the Gulf and wider Middle East, smartphones go far beyond the category of gadgets; they’ve become central to daily life. This quarter, value-conscious customers leaned into promotions, buy-now-pay-later deals, and competitive mid-range refreshes. Layer on the timing of religious holidays and a lively retail season, and suddenly, stores were moving more phones than they had in years.

The story wasn’t only about budget devices flying off the shelves. Premium buyers played their part too, drawn in by new payment options that made high-end models more accessible. That mix, affordable entry-level devices paired with aspirational flagships, carved out a sweet spot for vendors like Samsung and HONOR.

Samsung’s Steady Grip, HONOR’s Big Leap

Samsung played a familiar game but executed it well, its Galaxy A series, especially the lower-cost 4G models, struck a chord with everyday buyers, while the Galaxy S25 line and the S24 FE drew in the upgrade crowd. Flexible payment plans and shorter replacement cycles meant people weren’t waiting years to swap devices.

HONOR, on the other hand, is the comeback story. Shipments nearly doubled compared to last year, with the GCC countries emerging as a key growth engine. This was as a result of the aggressive retail expansion, heavy channel incentives, and a product pitch built around AI features. Toss in splashy promotions and a growing network of Experience Stores, and HONOR managed to feel both everywhere and aspirational at once.

Why AI is the New Battleground

The real story goes beyond who sold what; it’s about why people are upgrading. Analysts point to AI as the new cornerstone of vendor strategy. In places like the UAE, Saudi Arabia, and Qatar, governments are already incorporating AI into their national agendas, and consumers are now looking for phones that align with that vision.

The Bigger Picture

The smartphone market in the Middle East demonstrates independence from worldwide market stagnation as it creates its distinct direction. The region has developed into a promising market because consumers have increasing disposable income and digital government programs together with enthusiastic customer interest.

Geopolitical risks continue to exist, but the market here shows clear and unstoppable forward movement. The Middle East now leads the way instead of following trends so vendors who ignore this transition will fall behind.