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FinancialNews


  • 28-12-17

    Saudi Arabia & UAE predict a 10.1% decline in Smartphone market after VAT

    (MENAFN) Based on a recent report, a negative impact on the Smartphone market in Saudi Arabia and UAE is to be accompanied with the latest value-added tax (VAT) introduction next year.

    The International Data Corporation (IDC) has forecast in its report a decline in 2018 first half of 10.1% in Smartphone deliveries to Saudi Arabia and the UAE in comparison to 2017 first half.

    In a company press statement, IDC leading research analyst Isaac Ngatia pointed out "as for the anticipated slump in post-VAT shipments in H1 2018, the additional 5 percent for VAT purposes will obviously have an impact on end user prices, and as margins are already extremely narrow in the mobile phone space there will be little room to maneuver with regards to these increases. However, the effect is likely to vary across different price bands, with target consumers for lower-priced models being much more sensitive to changes in price."

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