Retailers in the UAE are experiencing notable reductions in smartphone prices along with reduced prices of electronics goods, and gaming merchandise, as they aim to take advantage of consumer buying before the peak summer travel season.
Reports indicate that gadget prices have reached their lowest level in three years, as leading retailers observe a 10-15% decrease in the prices of the iPhone 14 and Samsung’s Galaxy S23 compared to their launch prices. Apple and Samsung together dominate over 60% of the UAE smartphone market share, which can even rise to 80% in certain months.
Furthermore, Samsung is preparing for its highly anticipated major launch later this month, which will showcase its next Flip and Fold handsets. The current version of the Flip is available for less than AED 2,500. The smartphone market has witnessed a downward trend in prices since May, and this trend has recently gained momentum. Retailers are offering discounts of up to AED 1,000 on laptops from various brands, compared to their original prices.
Shoppers are undoubtedly pleased with the price drops across popular brands and various product categories. Sources indicate that the ongoing Dubai Summer Surprises event is one factor contributing to the aggressive offers, while the electronics and tech retail market is facing excess inventory in certain categories, particularly TVs.
Retailers in the UAE are preparing themselves for the possibility of further price reductions in the coming weeks. Market sources indicate that retailers are not offering significant price advantages to “grey” importers, depending on the model and category of products.
Saleem Jaaved, founder of Dubai-based firm Touch Tell, specializing in smartphone sales and distribution, elucidates that the price reductions on the iPhone 14 and Galaxy S23 have a primary objective of maximizing sales ahead of the expected summer slowdown. Jaaved emphasizes that there are still shortages of the iPhone 14 owing to upgrades and tourist purchases. Additionally, gaming products are being aggressively marketed and priced to attract customers, taking advantage of the current school break.
The lure of lower prices continues to drive consumer demand, as evident during the recent Eid holidays, which retailers consider one of the best periods of the year so far. The presence of heavy tourist shopping sprees also contributed to this success.
If the upcoming weeks can maintain even a moderate level of demand, the UAE’s tech retail sector will position itself for a strong start to the new season in September. The anticipated release of the iPhone 15 will likely play a significant role in this positive outlook.
