Iraq News Now

Shafaq News/ With the continuous technological advancement and the emergence ?f smartphones that offer a variety ?f features and services, the demand for these devices ?s increasing ?n Iraq.

While global studies indicate that Iraq will lead the "smartphone" market ?n the Middle East region until 2027, surpassing China, government statistics show that 86% ?f Iraqis aged over five have a "mobile phone," as global companies change their strategies t? satisfy Iraqi consumers.

The availability and expansion ?f mobile communication networks ?n Iraq promote the use ?f mobile phones and make them easily accessible, and improving economic conditions, individuals show greater willingness t? invest ?n technological devices, including mobile phones.

Mobile phone manufacturers exploit innovative marketing strategies t? boost their sales ?n Iraq, contributing t? increased demand for new devices. Various brands and models ?f mobile phones are available ?n Iraq, allowing consumers t? choose the option that suits their needs and budgets.

Overall, the mobile phone market ?n Iraq ?s considered active and witnessing continuous growth. This growth ?s expected t? continue with the ongoing technological advancements and improvements ?n economic conditions ?n the country.

First ?n the region

Research by Canalys specializing ?n economic affairs reveals that "vendors shipped 9.5 million smartphones ?n the Middle East (excluding Turkiye) ?n the second quarter ?f 2023, representing an annual growth ?f 2%. Iraq, ?n particular, has been experiencing continuous growth, overcoming economic challenges and currency fluctuations t? achieve significant growth ?f 24% ?n smartphone shipments."

In the third quarter ?f 2023, according t? Canalys research, "smartphone shipments ?n the Middle East reached 12 million, with a significant increase ?n annual growth by 21%. Iraq continued its strong momentum with a 57% growth driven by demand for smartphones priced under $150 and increased brand activities, notably Infinix and Tecno."

The Iraqi smartphone market has witnessed a flow ?f various brands ?n recent years, and the emergence ?f Chinese smartphones has led t? a significant shift ?n market dynamics, with these brands gaining popularity and trust among Iraqi consumers.

The success ?f Chinese vendors can be attributed t? their focus ?n product engineering and design, which the local audience has well received.

According t? the study, "Transition Company transferred the regional head ?f Tecno t? Iraq, while Xiaomi maintains its presence with more than eight stores ?n different cities, including Baghdad, Erbil, Al-Sulaymaniyah, Kirkuk, and Basra. HONOR, which has witnessed significant growth ?n this region, attributes its achievements t? its association with Huawei. Despite that, models like HONOR X6, priced at 159,000 Iraqi dinars ($119), received positive responses from many customers, and Realme's C53 model helped the brand's market share ?n the Iraqi smartphone market reach its highest levels ever."

Canalys expects "the Iraqi smartphone market t? remain relatively stable and reach 7.3 million shipments by the end ?f 2027."

In the fourth quarter ?f 2023, the growth rate ?f smartphones ?n Iraq increased t? 86%, despite increasing restrictions ?n cash withdrawals ?n US dollars by local banks, leading t? worsened shortages and an increase ?n exchange rates ?n the parallel market.

At the same time, vendors target younger demographic groups through marketing campaigns, capitalizing ?n the preference for smartphones with attractive designs, advanced technology, as well as reasonable prices.

According t? the global German data and business intelligence platform Statista, ?n 2024, smartphone market revenues ?n Iraq reached $2.1 billion, with an expected annual growth rate ?f 1.16%.

The Iraqi smartphone market ?s witnessing significant growth due t? the increasing internet perception and the presence ?f a number ?f tech-savvy youths.

Iraqi children and mobile phones

In a related context, the Ministry ?f Planning, ?n its latest report ?n smartphone usage ?n 2022, published ?n October 19, 2023, affirmed that "86% ?f Iraqis aged over 5 use mobile phones," indicating that "the usage rate among males reaches 90%, compared t? 81% among females."

"Only 14% ?f individuals d? not use mobile phones," noting that "the highest mobile phone usage rate was ?n Baghdad, reaching 97%, followed by Najaf at 93.5%, then Basra slightly below 93%, while Kirkuk ranked fourth at 92% and Wasit fifth at 72%." Survey results showed.

Government decisions

During a session ?f the Iraqi Council ?f Ministers ?n November 23, 2023, according t? a statement at the time, "a series ?f decisions and measures were taken t? facilitate the use ?f the financial transfers platform by importers ?f goods (gold, cars, mobile phones, cigarettes), enabling them t? access foreign currency financing at the official exchange rate and eliminating the need t? purchase foreign currency from the unofficial market,"

They also noted that "this will positively impact reducing the exchange rate ?f foreign currency ?n the unofficial market, as trade ?n the mentioned goods constitutes a significant part ?f the demand for foreign currency ?n the unofficial market."

Meanwhile, the Digital Media Center (DMC), ?n June 9, 2023, ?n the context ?f protecting Iraqi consumers from fraud, affirmed that "the budget law obligated the Media and Communications Commission t? contract with a specialized company t? start a project providing a comprehensive registration platform for mobile devices, aimed at ensuring tax and customs duty compliance by preventing the illegal importation ?f mobile devices and ensuring that imitated, stolen, and cloned devices are not imported t? protect consumers."

The DMC emphasized that "these laws, which its team has been advocating for and promoting over the past years, are a necessary requirement and an essential part ?f the digital age and artificial intelligence, t? regulate and determine its methods and contexts ?f work, and must be implemented professionally and not remain merely theoretical."

"Essential" mobiles

A mobile phone store owner indicated that "there ?s significant demand from citizens for modern technology, as mobile phones are not just for communication, they are used for photography and games as well."

Mobile phone prices ?n Iraq are a matter ?f concern for many, as smartphones are essential devices ?n people's lives at present. Mobile phone prices ?n Iraq range from cheap t? moderate t? expensive, and prices vary greatly depending ?n the brand, model, and different technical specifications.

For example, a smartphone can be purchased for between $70 and $200 ?n the cheap category, while a mid-range smartphone can be purchased for between $200 and $500. As for advanced phones with the latest technologies and specifications, their prices can exceed $1000.

According t? specialists, several factors affect mobile phone prices ?n Iraq, including taxes, customs duties, shipping and transportation costs, advertising costs, as well as the availability ?f the device ?n the market and the demand for it.