Dual-Sim phones double growth pace of MEA smartphone market

Much has been written about the rapid growth of the Middle East and Africa (MEA) smartphone market over the past couple of years, with IDC's latest figures showing smartphone shipments to the region increased by 115 per cent in the two years to this year's second quarter. Much less talked about, however, has been the surge in dual-Sim phones over the same period, with shipments of such devices increasing by 291 per cent within the smartphone sector.

Dual-Sim phones include all types of handsets that can hold two or more Sim cards. And these devices accounted for a staggering 71 per cent of the region’s smartphone shipments in the second quarter, as well as 57 per cent of the region’s feature phone shipments.

There are also multiple-Sim phones that have slots for as many as eight Sim cards, but these have yet to gain popularity in the region.

Within the dual-Sim category, dual standby is now the main technology in the market.

The capabilities of dual-Sim phones have evolved considerably in recent years – many early dual-Sim handsets allowed only a single standby, wherein a mobile phone had two Sim cards, but the user had to make a manual switch from one card to the other. While the older types are still available in the market, the current technology allows simultaneous use of two Sims, and a caller no longer needs to opt to use one card or the other.

Dual-Sim phones are proving popular in emerging markets around the world, particularly where reception may be poor in one area on one network, but good on another. Under such circumstances, consumers may prefer to have more than one Sim card in case they encounter connectivity problems on a network.

Dual-Sim phones are also much more common in countries where cellular operators do not dominate phone retailing, as they generally do not want to sell phones that can handle more than one Sim. In this regard, the MEA region is fertile ground, with operators accounting for only 11 per cent of overall phone shipments in the region.

A growing number of vendors have caught on to the increasing popularity of these devices, and have launched dual-Sim products of their own. Dual-Sim handsets now account for a high proportion of shipments for many of the region's leading vendors. For example, dual-Sim handsets accounted for about two-thirds of all Samsung smartphones shipped to the MEA region in the second quarter, and 75 per cent of the devices shipped by Huawei.

Convenience is key to the growth of dual-Sim phones. Many people in this region have several phones – usually one for business and one for personal use – so having one handset that gives them access to all their numbers is a key advantage. Another motivating factor is the desire to enjoy deals from different operators, as charges play a key role in determining the network choices that consumers make in this region. There is also the fact that many of the region’s expats travel back and forth a lot, and like to hold on to their old numbers from their home countries.

There is a considerable difference in the growth rates for dual-Sim devices in the Middle East versus Africa. Growth within the Middle East is less spectacular as key markets have already reached more than 100 per cent Sim penetration and usage habits have already been established. Growth in Africa, however, is much more pronounced, at the same time as smartphone use itself is much lower.

As technologies evolve and usage habits change over time, it will be interesting to see how this segment develops. But the surging popularity of dual-Sim capability has already resulted in it becoming a key feature that all vendors must bear in mind if they want to make a big impact in the Middle East and Africa.

Isaac Ngatia is a senior research analyst at IDC MEA.

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