US Tariff Exemptions Boost iPhone Sales in Saudi Arabia

Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
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US Tariff Exemptions Boost iPhone Sales in Saudi Arabia

Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)

Smartphone sales in Saudi Arabia have surged in recent weeks, driven largely by temporary US tariff exemptions on imported electronics, including Apple iPhones, manufactured partially in China and India.

The decision, introduced by the administration of President Donald Trump, has led to increased consumer demand, particularly for high-end models, amid concerns that tariffs could be reinstated soon.

Retailers across the Kingdom have reported higher footfall and an uptick in purchases, particularly of the iPhone 15 and iPhone 16 Pro models. This shift comes at a time when financing options and promotional offers are flooding the market. Consumers are accelerating their buying decisions, seeking to avoid future price increases that could result from renewed trade restrictions.

According to Canalys, Apple captured 23 percent of global smartphone market share in the last quarter of 2024, with the iPhone 15 leading global sales.

In Saudi Arabia, demand for smartphones is projected to remain strong, with market size expected to reach $2.3 billion (SAR 8.6 billion) by 2025, supported by sustained interest in premium devices and a growing tech-savvy population.

Retailers in Riyadh, one of the country’s key commercial hubs, have reported robust activity. Ibrahim Al-Mutairi, a smartphone dealer, told Asharq Al-Awsat that iPhone sales, especially for previous-generation models, have been climbing steadily.

He noted anticipation is already building for the release of the next iPhone model, expected in September.

Consumers, too, are responding quickly. “The online discounts are better than usual, and I wanted to buy now before any price increase,” said one customer. Zero-interest installment plans offered by many retailers have further encouraged purchases, expanding access across a wider customer base.

Economist Dr. Salem Baajajah of King Abdulaziz University told Asharq Al-Awsat that the tariff exemptions have contributed directly to stronger sales. He noted that while the decision is temporary, it has helped stabilize pricing in the short term.

Baajajah also emphasized India’s rising prominence in the global smartphone supply chain.

Apple has been gradually shifting a portion of its production to India as part of a broader strategy to diversify manufacturing beyond China. Foxconn, one of Apple’s key suppliers, assembled iPhones worth $22 billion in India during the last fiscal year, representing about 10 percent of Apple’s global output.

Despite the temporary nature of the tariff relief, the broader impact on the Saudi market has been significant.

Dr. Abdullah Al-Jassar, a member of the Saudi Economic Association, described the trend as an example of rational consumer behavior.

“People are anticipating future price increases, and they’re acting accordingly,” he told Asharq Al-Awsat, adding that Saudi consumers are demonstrating growing economic awareness.

With more than 91 percent of the population using smartphones, Saudi Arabia continues to represent a major market for global tech companies. Al-Jassar emphasized that diversifying supply sources and promoting local manufacturing could help shield the market from external trade shocks.



Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
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Berlin Eyes Partnership with Riyadh in Expo 2030, Climate Cooperation, Hydrogen Initiatives

Saudi and German flags fluttering - File Photo/Asharq Al-Awsat
Saudi and German flags fluttering - File Photo/Asharq Al-Awsat

A senior German official affirmed his country’s commitment to strengthening cooperation with Saudi Arabia across various fields, noting that bilateral trade relations continue to grow steadily, with trade volume reaching around 7 billion Euros.

Speaking to Asharq Al-Awsat, German Ambassador to Saudi Arabia Michael Kindsgrab said: “The sectors driving this growth—chemicals, machinery, and transport—reflect the strong industrial connections we share. These are areas where German expertise is making a real difference in Saudi Arabia’s development.”

He added: “Looking ahead, there is much to be excited about. Expo 2030 is an incredible opportunity for us to further deepen our collaboration, showcase the best of what both Saudi Arabia and Germany have to offer, and inspire future generations to continue building on this remarkable partnership.”

German Ambassador to Saudi Arabia Michael Kindsgrab - Asharq Al-Awsat

Renewable Energy

On climate cooperation, the official said: “As for climate cooperation, we have just launched a relevant study on the Saudi labor market in the renewable energy sector, which was reviewed by the National Labor Observatory and discussed with experts of KAPSARC, KaCare and PSU. This is a great example of our close and meaningful partnership, tackling the challenges of today with an eye on the future.”

Blossoming Relations

Kindsgrab noted that Saudi-German relations are truly blossoming, saying: "I am proud to see our partnership becoming deeper and stronger across so many areas. From a personal perspective, it is inspiring to witness the growing bonds between our two countries. These ties span a wide range of sectors, including energy, transport, architecture, health, education and culture—creating a solid foundation for the future.”

“One of the most exciting aspects of our cooperation is in the area of energy transition. German innovation is at the heart of NEOM’s green hydrogen projects, with Thyssenkrupp Nucera playing a key technological role in making the vision of decarbonization of industry a reality,” he affirmed.

“Beyond energy, we’re also seeing significant progress in transport, where Siemens’ delivery of metro wagons helped to shape the modern infrastructure of Saudi cities. And let’s not forget the impact of German architecture in megaprojects such as King Salman Park or the design of Expo 2030, which I believe will be a landmark event for both our countries, ” added Kindsgrab.

“In the health sector, the collaboration with Charité in Berlin is another example of how our nations are working together to improve lives.”

Accelerated Cultural Cooperation

“And now, I am particularly excited to see the acceleration of cultural cooperation, such as the recently launched museum initiative between the Saudi Museums Commission and the Prussian Cultural Heritage Foundation of Germany,” the German ambassador stressed.

“This cooperation emerged as part of our shared efforts to strengthen people-to-people ties and will play an enriching role for the cultural relations, as it includes a loan program for artworks, joint curatorship and training programs to support talent development,” he concluded.