Apple's iPhone loses its exclusivity in UAE

The UAE’s Telecommunications Regulatory Authority (TRA) has revealed the findings of a review it has undertaken of the nation’s most popular smartphones and other mobile phone handsets, social networking platforms and applications websites.

With more than two handsets each on an average, UAE consumers are at the proverbial cutting edge of technology adoption. So, which handsets we prefer does – or should – matter to manufacturers.

Every mobile phone manufacturer – especially Apple Inc. (NASDAQ:AAPL) and Samsung (NASDAQ:SSNLF) – would, therefore, do well to pay heed to the findings.

According to the TRA’s report, in terms of smartphones, Apple still rules the roost in the country, with iPhone 5s becoming the most commonly used mobile handset in the UAE, followed (in the smartphones domain) by the iPhone 5 with both Samsung and Apple recording an increase in their market shares.

While the iPhone was once considered the handy candy of the elite, statistics show that more people now sport the iPhone 5s than any other handset - smart or dumb - in the UAE. Of course, average income of UAE residents ranks among the highest in the world, which makes the iPhone fall under the 'affordable' catagory for many in the country. 

Still, the iPhone 5s recorded the highest increase in the smartphones market share during the second quarter of 2014, replacing the iPhone 5 as the most popular smartphone and replacing the Nokia 101/1010 as being the most commonly used handset in the UAE.

According to the report, during the period between April 1, 2013 and June 30, 2014, almost 6 out of 10 (57 per cent) of handsets registered on the UAE’s networks were smartphones, a figure that increased by 5 per cent in the second quarter of 2014 alone.

In terms of smartphone models, the iPhone 5s was the most commonly used smartphone in the UAE comprising 3.5 per cent of total handsets registered on UAE networks, a figure that increased by 22 per cent during Q2 2014.

The report illustrates that the iPhone 5 was the second most popular smartphone with 2.6 per cent of the market share. The third most commonly used Smartphone was the Samsung S III (2.6 per cent), followed by iPhone 4S (1.9 per cent) and Samsung S4 LTE (1.8 per cent).

The list goes on to show the immense popularity that Apple’s iPhone enjoys among Dubai and Abu Dhabi consumers, with both the top two slots occupied by devices from the Cupertino-based tech giant.

The market shares of the Galaxy S Duos, Samsung S4 LTE, Samsung S5 LTE and Samsung Note 3 increased whereas the older models of the iPhone (iPhone 4s, iPhone 4), and BlackBerry Bold 9900 fell.

Also among the top 10 was No. 6 ranked Galaxy S Duos (1.7 per cent), followed by iPhone 4 (1.5 per cent), Samsung Grand (1.2 per cent), Samsung Note 3 (1.2 per cent), and BlackBerry Bold 9900 (1.2 per cent).

“The report illustrates a number of interesting trends emerging in the UAE’s mobile handset market. It also demonstrates the dynamic nature of consumer patterns in relation to handset choices,” said Majed Al Mesmar, Deputy Director General – Telecom Sector, TRA.

“The findings derived from the TRA’s latest piece of research reinforce the vibrancy of the UAE’s mobile sector. The TRA is committed to producing research that accurately depicts the current state of the market which in turn, enables the UAE to track its progress and remain ahead of the global mobile industry curve.” he added.

In terms of general phones (non-smartphones), no surprises there – it’s Nokia that is the biggest boy in that playground, and has an almost insurmountable lead over other minions.

The report indicates that 46 per cent of all handsets registered on UAE networks were manufactured by Nokia, although this figure has been declining over time.

This figure decreased by 4 per cent in Q2 2014. This was followed by Samsung (22.5 per cent), Apple (10 per cent), BlackBerry (6.8 per cent), LG (0.9 per cent), and HTC (0.9 per cent).

Unlike Nokia and Blackberry, Samsung and Apple recorded increases in their market shares in Q2 2014, said TRA.

In terms of specific handset models, the iPhone 5s was the most popular mobile handset in UAE in Q2. The Nokia 101/1010 (3.1 per cent) was the second most popular handset followed by the iPhone 5 (2.7 per cent), both the Samsung S III and Nokia 1280/1282 at (2.6 per cent), Nokia E5 (2.3 per cent), Nokia X1 (2 per cent), iPhone 4S (1.9 per cent), Samsung S4 LTE (1.8 per cent), Galaxy S Duos (1.7 per cent), iPhone 4 (1.8 per cent), Samsung Grand (1.2 per cent), Samsung Note 3 (1.2 per cent),BlackBerry Bold 9900 (1.2 per cent);and Samsung S3 Mini (0.8 per cent).

The report also provides information on the most popular mobile operating systems used in the UAE.  The use of Symbian is declining over time and the Android was the most commonly used operating system in the UAE as of Q2-2014. The market share of iOS is increasing while RIMs (the operating system for Blackberry) is decreasing.

During the period from April 1, 2014 to June 30, 2014, users of smartphones and fixed Internet services in the UAE visited various applications websites. Apple iTunes was by far the most commonly visited applications website, followed by Samsung Apps, Android Applications, Nokia OVI while Blackberry App came last. The number of visits to BlackBerry and Nokia applications websites has been declining over time while the volume of visits to Apple iTunes and Samsung is progressively increasing.

In terms of social media, UAE Smartphone and fixed Internet users made 35 billion visits to social networking websites during the period April 1, 2014, to June 30, 2014. Visits to Facebook accounted for 86 per cent of total visits to social networking sites, followed by Twitter with 11 per cent of visits, then LinkedIn, Maktoob and MySpace.

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