After more than two years of declines, the European smartphone market has started to show signs of recovery, with a 10% year-on-year increase in shipments during the first quarter of 2024, according to Counterpoint Research. However, analysts are cautious about predicting a significant long-term upswing.
This growth, the first since Q3 2021, appears promising but comes with a caveat. The same quarter last year saw unusually low shipment numbers, potentially inflating this year’s 10% rise. Jan Stryjak, Associate Director at Counterpoint Research, noted that while consumer confidence is improving, driven by new AI innovations in smartphones, the market’s recovery remains fragile.
“We expect modest growth for the rest of 2024,” Stryjak said, “but this follows a very poor 2023, and we do not anticipate a return to pre-pandemic shipment levels soon.” Although specific volume figures were not disclosed, the Q1 2024 shipments were still significantly lower than pre-Covid-19 numbers, highlighting the ongoing challenges.
Despite these reservations, the rebound is a positive development for major smartphone manufacturers who have struggled with declining sales. Improved macroeconomic conditions and innovative new devices have contributed to this uptick. Notably, Samsung, Xiaomi, and Honor have made significant strides.
Samsung saw a resurgence with its Galaxy S24 series, achieving its first shipment growth since late 2021. Although its market share dipped slightly to 32%, a 7% increase in shipments helped reclaim its market leader position from Apple, which experienced declines in both shipments and market share.
Honor made notable progress, climbing to fifth place in the market, surpassing Oppo. The brand’s shipments grew by 67% year-on-year, driven by strong performance in Western Europe, where its sales more than doubled. Xiaomi and Realme also performed well in Western Europe, with Realme seeing significant gains in Central and Eastern Europe.
Overall, while the European smartphone market’s growth offers reasons for optimism, vendors are advised to remain cautious and not overly optimistic about the future.
