According to the latest insights from market analysts at Counterpoint Research, European smartphone shipments have reached a new low. In their recent report, the Market Monitor Service, the research firm reveals a significant 12% year-on-year decline in smartphone shipments in the second quarter of 2023. This marks the lowest quarterly shipment volume recorded since the first quarter of 2012.
The decline in smartphone shipments has been more pronounced in Western Europe, where a 14% drop was observed. In contrast, Eastern Europe, already facing challenges, experienced an 8% decrease.
An interesting outlier in this scenario is Russia, which saw a 4% year-on-year growth in smartphone shipments. However, this growth is not indicative of a healthier market or increased buying power among consumers. Instead, it can be attributed to the fact that the second quarter of 2022 was the first full quarter following Russia’s invasion of Ukraine, leading major smartphone players to exit the market.
Xiaomi emerges as the market leader in Russia, with realme securing the second position. Realme, a rising Chinese manufacturer, experienced impressive growth of 12% year-on-year, claiming 55% of the brand’s shipments in the region. Counterpoint Research suggests that realme’s success can be attributed in part to the exit of Samsung and Apple from the market. Notably, realme has held the second spot for five consecutive quarters and has been steadily closing the gap with Xiaomi.
HONOR also witnessed growth of 9% year-on-year in this challenging market environment.
The smartphone market in Europe has been grappling with stagnant growth for years, with new models offering incremental improvements and little differentiation in form factors across manufacturers. The lack of a “wow” factor in new smartphones has prompted consumers to increasingly consider used and refurbished devices. While foldable smartphones show promise, they have yet to capture the majority of consumers’ interest.
