The European smartphone market exhibited encouraging signs of recovery in the first quarter of 2024, rebounding from a prolonged downturn with a 10% year-on-year rise in shipments, according to Counterpoint Research. This represents the first positive growth since Q3 2021, indicating a possible turning point for the region.
Top Brands Drive Market Growth Amid Recovery
Tech giants Samsung, Apple, and Xiaomi upheld their dominance, yet the dynamics within the top three varied. Samsung saw a 7% increase in shipments, securing the market leader position with a 32% share. This positive shift follows a period of decline, likely propelled by the success of their AI-powered Galaxy S24 series. The introduction of the new A35 and A55 models towards the end of Q1 may further enhance their standing in the upcoming months.
Apple, conversely, experienced a minor 1% drop in shipments despite retaining a strong 25% market share. This decline can be attributed to the natural sales cycle of iPhones, with iPhone 15 sales waning due to seasonality. The lack of a new iPhone SE model in 2024 suggests further decreases until the much-anticipated iPhone 16 release later this year.
Xiaomi consistently grew with an 11% shipment increase, cementing its role as the third-largest player with an 18% share. Their success was notably significant in Western Europe, particularly in Spain and Italy, driven by the well-received Redmi Note 13 series. However, Xiaomi faced hurdles in Central and Eastern Europe, where intensifying competition from Samsung and Tecno reduced their market share to its lowest since early 2022.
Emerging Players and Market Dynamics
Beyond the established leaders, the report identified notable trends. Realme experienced a substantial 59% growth, driven by strong performance in Western Europe and a resurgence in key markets like Italy and Spain. Their affordable C series remained top sellers, with the new Realme 12 gaining momentum as well.
Another significant player, Honor, achieved an impressive 67% growth, surpassing Oppo to claim the fifth position in Europe for the first time. This remarkable accomplishment was fueled by their success in Western Europe, where shipments doubled year-on-year thanks to exciting devices like the Magic V2, Magic 6, and Honor 90.
While the recovery is encouraging, Counterpoint Research analyst Jan Stryjak advises caution against over-optimism. The 2023 slump was considerable, and the European market has yet to return to pre-pandemic levels. Growth is expected to continue at a modest rate throughout the rest of 2024, but reaching pre-pandemic figures will likely require more time.
