UAE's IT consumer market still reeling

GfK report reveals 38% drop in technical consumer goods market value compared to last year

Tags: DesktopsGfK GroupUnited Arab Emirates
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UAE's IT consumer market still reeling GfK values the UAE's technical consumer goods market at AED 2.69 billion for the third quarter of 2009.
By  Vineetha Menon Published  November 30, 2009

The United Arab Emirates' IT consumer market is still reeling from the effects of the economic downturn as latest quarterly figures by market research specialists GfK reveal a 33.7% drop in market value compared to last year.

In the firm's TEMAX index, which tracks the technical consumer goods market in more than 30 countries worldwide, market value in the UAE dropped to reach AED 2.69 billion for the third quarter of this year with the decline attributed mainly to "lowering price offers".

Display monitor product sales were the worst affected though desktop computers and notebooks also suffered.

Monthly analysis however saw notebook sales increase slightly by 6% from August to September, fuelled by the uptake of netbooks.

"Currently around 16,000 netbooks are sold in the UAE every month - this equates to roughly 1 in every 5 Mobile PC sales," GfK's business group director Marina Turner revealed to

The telecom and mobile phone markets in the UAE also remain battered, despite the smartphone segment experiencing healthy growth both in the country and the rest of the Middle East.

"The mobile phones market in the UAE is still down on a year on year comparison. This decline is no doubt linked to the general economic slowdown. It is also likely to reflect the fact that consumers are not replacing their phones as often, which means that handset lifecycles are being extended," explained Turner, adding that it's not all bad news for the market.

"Looking at short-term trends - Q3 was actually a growth on Q2 which suggests the early signs of a market recovery. If this trend continues then it is plausible that mobile phone sales in Q4 will exceed initial expectations," she concluded.

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