The winds of change in the Dubai mobile business world

The guys at Handelot summed it up very well today when we met in DAFZA, Dubai. What used to happen in Dubai was unusual, and what’s happening now is the new normal across the world. Companies were making money off the charts, and the markets used to absorb any number of devices raining in. I would like to take this opportunity to introduce the new Dubai trading to our readers and what to expect for the times to come. In short, things have changed...and changed for good.

Reason for change:

a. Implementation of 5% VAT in the local market in a trade that was barely making 1-1.5%. b. Direct approach of brands in key markets such as Saudi Arabia, where devices are sometimes cheaper than in Dubai. Plus, local regulations regarding imports of products without 3 PIN chargers is almost next to impossible. c. Iran implements the IMEI block that rules out any grey imports. The majority of Iraq and Kurdistan business was based on the cross-border grey trade with Iran. There goes another market for exports.

d. There aren’t too many brands to trade anymore. It’s a fight between Apple and Samsung with Huawei occasionally making it interesting. The only surprising comment I heard yesterday was from a distributor in a key market. They said that they would only sell Huawei in the grey if it’s bundled with their Samsung stock. What does this mean? There are just too many Samsung units floating around in the market, and the recent flops of the flagships didn’t help the cause either.

e. Huawei and Honor are the brands to watch.