As competition in the UAE’s tech retail market intensifies, retailers are offering discounts and trade-in incentives to attract shoppers and boost sales. The price cuts and incentives are especially focused on the latest smartphones and tablets, as retailers look to clear out stocks of devices that are being sold without warranties.
Since mid-March, current-generation Apple iPhone and iPad prices have seen significant cuts of up to Dh1,000. Retailers are also offering more incentives on recently released models such as the Samsung Galaxy S23. These discounts and incentives are at the most shopper-friendly levels, as retailers are determined to outdo each other and gain market share.
As the Eid holidays approach, retailers are hoping to capitalize on the expected surge in Gulf visitors to Dubai and the UAE. This is seen as a crucial opportunity to boost sales, as many visitors may be looking to upgrade their current devices. Retailers are placing a greater emphasis on trade-in programs, which they believe are an effective way to incentivize premium smartphone users, who tend to hold onto their devices for longer periods of time, to upgrade to newer models.
Rajat Asthana, the COO of Dubai-based Eros Group, notes that trade-in programs are essential in encouraging users with premium models that cost between $800 to $1,000 to upgrade their devices. He adds that in the past three years, many users have been holding onto their smartphones for 36-40 months, and trade-ins help to overcome their reluctance to upgrade.
In summary, retailers in the UAE are aggressively promoting discounts and incentives to clear out their stocks of devices being sold without warranties and to attract and retain customers. With Gulf visitors expected to flock to Dubai and the UAE for the Eid holidays, retailers are hoping to leverage this to boost sales and gain a competitive edge in the market.
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