‘Clouds’ in the European smartphone market, sales continue to fall

By Fotis Fotinos

Buying a new mobile phone has ceased to be a priority for the average European, at least for now.

Inflation, which is “growing” in all European economies, combined with the reduction of purchasing power, but also the caution of consumers in view of the winter season, continues to have a negative effect on the retail sales of smartphones.

According to the latest report by Counterpoint Research, in the first quarter of the year, the European smartphone market saw a 12% drop in sales, with 49 million units sold.

This performance “turns” the market almost 10 years back (1st quarter of 2013), revealing the multitude of challenges of the current period (war in Ukraine, lockdowns in China, shortages of spare parts, arrhythmias in the supply chain).

“New economic and geopolitical challenges have been added to the existing problems, such as the pandemic and the lack of components.

“Rising levels of inflation across the region are affecting consumer spending,” said Counterpoint Research, adding that the year would end in a negative light.

It is estimated that the market moved under “great pressure” in the second quarter of the year, due to rising inflation, but also after the withdrawal of Samsung and Apple from the Russian market.

Market shares, Apple “dominance” in Europe in April

According to the same company, Apple led the smartphone market share in April, occupying the first 5 places, with the first 4 belonging to the “iphone 13 family”, while in the 5th place was the iphone 12.

The next places were occupied by SAMSUNG mobile phones, while the 10th place was taken by Xiaomi Redmi Note 11.

Respectively, globally and according to a survey by the International Data Corporation (IDC), Samsung had, in the first quarter of the year, a market share of 23.4%, Apple 18.0% and Xiaomi, OPPO and vivo followed with a share 12.7%, 8.7% and 8.1% respectively.

Given these uncertainties, most smartphone makers are adopting a more conservative growth strategy for 2022.
In fact, some have predicted price increases on the devices, due to the increased cost of raw materials and logistics.