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Friday, October 30, 2020

Saudi retailer sees boost from iPhones after Q3 surge

Apple's iPhone 12 launch is very important said United Electronics Chief Executive Officer Mohammed Galal Fahmi in an interview with Bloomberg TV, adding that the new phones would be a “good boost” for the fourth quarter.

By: Bloomberg | October 13, 2020 1:42:59 pm
Apple, iPhone 12, Apple iPhone 12 launch, iPhone 12 Mini, iPhone 12 Pro, iPhone 12 Pro Max, United Electronics, Extra, Extra mobiles, Apple Q3, Apple Q4 (Image: Bloomberg)

United Electronics Co’s third-quarter profit doubled as consumers spent more on electronics amid the coronavirus pandemic, and the Saudi Arabian retailer said Apple Inc.’s new iPhone could be a potential “breakthrough” later in the year.

Apple’s biggest product launch event of the year will be held on Oct 13. The company plans to reveal four redesigned iPhones with 5G wireless capability, upgraded cameras, faster processors and a wider range of screen sizes, Bloomberg News has reported.

“That is a very important launch,” United Electronics Chief Executive Officer Mohammed Galal Fahmi said in an interview with Bloomberg TV, adding that the new phones would be a “good boost” for the fourth quarter.

The introduction of the new iPhones is occurring about a month later than usual following final testing and production delays due to the pandemic.

United Electronics, also known as Extra, reported revenue of 1.23 billion riyals ($328 million) for the third quarter, up 18 per cent from the same period last year. Profit rose 96 per cent.

The reallocation of consumers’ money from travel and entertainment to electronics retail “was a pleasantly surprising factor,” the CEO said. The company was expecting “softer” months due to higher value-added tax in the kingdom.

The CEO also said:

* Extra is expanding and investing more in e-commerce platforms.

* The company didn’t dismiss employees during the lockdown as it expanded certain parts of the business such as online and consumer financing.

* The consumer trend is up in Saudi Arabia. “The challenge will be where they’re going to finance” electronics purchases.

* “Saudi consumers are going to have a shift and develop new habits of financing their purchases in the future.”

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