Sherif Barakat , Vice President of Samsung Electronics Egypt, said the Egyptian mobile phone sector has a large potential for growth, supported by a broad base of over 90 million users, of which most are youth.
Barakat added that the local manufacturing of mobile phones faces several challenges, most strikingly that the customs imposed on the components of mobile phones range between 10% and 20%. Meanwhile, no customs are imposed on importing mobile phones. He pointed out that applying customs exemption on components of mobile phones will encourage local manufacturing.
In regard to the US dollar shortage, Barakat said that the parent company has a positive outlook on the Egyptian market, explaining that the Egyptian market will regain its normal growth when economic conditions are stabilised. Egypt has the largest market of home appliances and mobile phones in the Middle East.
According to Barakat, Egypt ranks among the top five markets in Samsung sales in the Middle East and North Africa. He also pointed out that Egypt’s gross domestic product (GDP) growth rate reached 4.5% last year, which indicates that Egypt has a growing economy compared to neighbouring markets.
International Data Corporation’s (IDC) report on the third quarter (Q3) of 2015 showed that Samsung had the largest market share of smartphones in the Middle East in 2015 with 45%, compared to 52% in the same period of 2014. According to the report, Apple came in second place with a market share of 18%, compared to 15% in 2014. Huawei ranked third with a market share of 11%, compared to 6% in the same period a year earlier. Lenovo had the same market share as Huawei, while HTC owns 3% of mobile phone sales in the Middle East.
Samsung also has the largest proceeds of mobile phone sales in the Middle East with 47%, followed by Apple with 36%, while Huawei and Lenovo had equal shares of 4%, and HTC’s proceeds sales amounted to 3%.