The Middle East smartphone market may not be as strong as other parts of the world, such as the United States and Europe; however, it is achieving strong growth with some companies taking full advantage.
Both Nokia Corporation (ADR) (NYSE:NOK) and Google Inc (NASDAQ:GOOG) are winning big in this part of the world. These companies realize that there are other markets that are just as important, if not more so, but emerging markets are often times the key to future growth.
According to a recent report by IDC, two phones out of every five sold in the Middle East are smartphones. This goes a long way in showing just how far the market has come in a short period of time. It also shows why companies like Nokia and Google want to spend time here.
How do Nokia Corporation (ADR) (NYSE:NOK), Google Inc (NASDAQ:GOOG) Fit in?
The number of smartphones sole in the Middle East during the second quarter of 2013 shows just how much growth is taking place in this region. Smartphone volume is up 16.4 percent when compared to the same period of 2012. In its Middle East figures, IDC includes Turkey but leaves out North Africa and Egypt.
Nokia Corporation (ADR) (NYSE:NOK) continues to remain the brand leader with 45.2 percent market share. The company has a huge lead, with its closet competitor being Samsung with 18.3 percent of the market. That being said, Samsung is coming on strong with “nearly half of all the smartphones sold in the region in Q2 2013.”
With Samsung performing at such a high level, you can only imagine what this means for Google Inc (NASDAQ:GOOG) Android. You got it: this operating system is number one in the region with 60 percent share of overall smartphone volume. It is important to note, however, that Android is facing stiff competition in the Middle East, thanks to iOS and Windows operating systems.
Simon Baker, program manager at IDC, noted, “as the smartphone markets of the developed world become saturated, the Middle East is becoming more important to handset makers.”
At this point, it is obvious that Nokia Corporation (ADR) (NYSE:NOK) and Google Inc (NASDAQ:GOOG) are aware of the importance of spending resources in the Middle East.