Rapid expansion of 3G networks and increasing use of smartphones is leading to a striking demand for trendy mobile handsets and applications in the Middle East, organisers of the annual ICT trade event Gitex aver.
Similarly, according to a recent study report by Interactive Data Corp, the worldwide smartphone market grew by more than 56 per cent in the first quarter of 2010.
“Over a longer period, The Middle East and Africa is set to be among the top global smartphone markets, with a sustained compound annual growth rate (CAGR) of 39 per cent for the next four years,” the report stated.
The Middle East mobile market is however, not impervious to challenges as it continues to expand rapidly, what with the recent spat with BlackBerry maker Research in Motion, over data security concerns. The main concern in the region is that data is processed and stored in servers in RIM’s home base of Canada as well as in the US, where they have no authority over them.
Some Mideast countries have maintained a sustained campaign to compel RIM to loosen up the data security on its BlackBerry networks, but the Canadian firm maintains its customer information is secure despite reports that it has made some concessions to Saudi Arabia, Kuwait and is also expected to do the same with the UAE before October 11, when the country is expected to block some BlackBerry services, including email, instant messaging and web browsing. Kuwaiti government had earlier asked RIM to cut off access to porn sites.
The mobile phone market in the UAE has been forecasted to grow annually at 7 per cent valued at $ 374 million (Dh1.4 billion) by 2014. Further, the sale of smartphone devices in the Middle East would reach 8.5 million units by end of this year. On the other hand, sale of apps and downloads are predicted to reach $15.65bln by 2013.
Operators preparing for telecoms windfall
With these optimistic forecasts, SanDisk Corporation, the inventor and supplier of flash storage cards, says Middle East operators and device manufacturers are preparing for a telecoms windfall.
SanDisk’s Tareq Husseini, the Middle East and Africa Sales Director told Alrroya.com that the corporation is also constantly developing new technologies to expand its product offering.
“We are futuristic in our outlook and based on industry projections, we are optimistic about our growth this year,” Husseini said, adding that the 32GB microSDHC and the Xbox 360 USB Flash Drive will be the highlight of the company for this quarter.
Husseini also revealed that mobile penetration in Qatar currently exceeds 100 per cent and is forecasted to exceed 210 per cent by 2014. Further, mobile handset sales in Qatar are expected to total Dh297m (QR295m ) by 2014.
“Lebanon is also on an impressive growth path with its mobile subscriber base recorded to have touched the 40,000 mark in 2009 and just BlackBerry users would reach the 30,000 mark by the end of 2011,” he added.
Gitex sets up special platform for apps and content
As the region’s consumers discover the concept and access the increasing amount of apps and content, many of the established stores are focussing their attention on the Mena region.
To reflect the importance and help develop these markets, this year’s 30th anniversary of Gitex Technology Week is introducing the Gitex Mobile Apps and Content World, a dedicated platform for the mobile applications and entertainment market.
In a statement, Helal Saeed Almarri, Chief Executive Officer of Dubai World Trade Centre, the organiser of Gitex said: “The Middle East is well known for its demand for the latest mobile hardware and software, and apps and content are at the cutting edge of this highly lucrative sector. In order to take advantage of a market it is necessary to fully understand its progress and demand, and Gitex Mobile Apps and Content World will serve as a dynamic platform where international vendors and consumers can do exactly that.”
For handset manufacturers, mobile network operators and developers, the Gitex Mobile Apps and Content World promises to bridge the telecommunications and consumer electronics market, providing opportunities to gain marketing exposure to the B2B and B2C audience across the Middle East region.
Consider also reading:
US, Canada in talks with UAE over BlackBerry ban
UAE telecom firms to offer BlackBerry alternatives
BlackBerry expansion at risk amid challenges
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