Global smartphone industry, which suffered three consecutive quarterly declines this year due to the coronavirus-induced market disruptions, is expected to return to growth in 2021, driven by the deployment of 5G networks and availability of more affordable handsets, industry analysts said.
In developed markets, 5G will be available to most consumers regardless of brand or price point, Ryan Reith, vice president at Massachusetts-based International Data Corporation, said.
“Marketing has ramped up significantly. Products are widely available. Promotions are happening ... and it is clear that the top sales initiative in these markets is to push 5G,” Mr Reith added.
Like other sectors, the pandemic upended the smartphone industry and handset sales as it led to wide-spread store closures and disrupted supply chains.
But the smartphone vendors and retailers soon adapted, transitioning their business to online channels as the Covid-19 confined people to their homes.
"Despite the negative impact of Covid-19 felt across the phone industry in 2020, vendors and channel partners have learned new ways to attract buyers during this difficult time," said Anthony Scarsella, research manager at IDC.
South Korean electronics giant Samsung sold 192.9 million smartphones in the nine months up to September 30, about 33.4 million less than a year ago, with its market share at 21.2 per cent, according to IDC.
Chinese manufacturer Huawei sold 156.7 million handsets during the same period and had a 17.2 per cent market share.
In the first three quarters of the year, Apple and Chinese smartphone maker Xiaomi grabbed 12.8 per cent and 11.5 per cent market share, respectively.
Apple, which usually launches new iPhones every year in the third quarter, was forced to push this year’s release to October owing to coronavirus-related supply chain disruptions.
This led to a sharp decline in the third quarter sales. However, analysts expect it to bounce back in the holiday quarter as it capitalises on strong, early demand for the new iPhones and robust trade-in offers by major telecoms networks, especially in the US.
Early signs of a recovery were also seen in a few markets during the third quarter, including in parts of Asia-Pacific and Latin America, according to Connecticut-based research and advisory firm Gartner.
“Near normal conditions in China improved smartphone production to fill in the supply gap in the third quarter which benefited sales to some extent,” said Anshul Gupta, senior research director at Gartner.
“For the first time this year, smartphone sales to end users in three of the top five markets, India, Indonesia and Brazil increased [in Q3], growing 9.3 per cent, 8.5 per cent and 3.3 per cent, respectively.”
IDC added that a “faster than expected rebound” in key emerging markets could further boost the smart phone sales. India, which is the second largest market globally, witnessed very strong volumes during the third quarter despite further concerns around the Covid-19 pandemic.
“Global smartphone sales experienced moderate growth from the second quarter of 2020 to the third quarter. This was due to pent-up demand from previous quarters,” Mr Gupta said.
But certain challenges still persist. Gartner said that the pandemic-induced delays in 5G network upgrades has “limited the opportunity for smartphone vendors”. In addition, “economic uncertainties and fear of the next wave” will weigh heavily on non-essential spending through the end of 2020.
“Consumers are limiting their discretionary spend even as some lockdown conditions have started to improve,” Mr Gupta said.
With a wider global roll out of the 5G network expected next year, smartphone companies are gearing up to provide more economical 5G-enabled devices.
A 5G network promises an internet speed of up to 1.2 gigabits per second, which will gradually reach 10Gbps – more than 100 times faster than 4G.
With lower-priced 5G smartphones, companies such as Vivo, Samsung, Oppo and Google are attempting to grow their consumer hardware business and attract new customers in a slow market.
Customers can now purchase 5G-enabled smartphones in the range of $150 to $1600.
Samsung’s Note20 Ultra, which was rolled out in August, was the best-selling 5G model globally in September, capturing 5 per cent share among all 5G models, according to Hong Kong-based Counterpoint Research.
Seven out of the top 10 5G models are from Chinese manufacturers – which is not surprising, considering over 60 per cent of the global 5G market is situated in China.
However, the next wave of demand for 5G devices will be from regions like North America and Europe, areas with relatively big installed base of Apple users, Ankit Malhotra, a research analyst at Counterpoint Research, said.
“The launch of iPhone 12 series [in October] will prove to be an inflection point for 5G in these areas and the top 10 list will look quite different after a couple of months,” he added.
Presence of Vivo and Oppo’s budget segment phones in the current 5G top-seller list indicates that 5G, which was once ‘flagship only’, is now trickling down to even the budget segment phones, Mr Malhotra said.
“Thanks to the availability of newer, cheaper chipsets from Qualcomm and Meditek.”
The specs: 2019 Mercedes-Benz C200 Coupe
Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km
THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
The Case For Trump
By Victor Davis Hanson
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
WORLD CUP SEMI-FINALS
England v New Zealand
(Saturday, 12pm UAE)
Wales v South Africa
(Sunday, 12pm, UAE)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
The five pillars of Islam
