Counterpoint: European smartphone market down 12% in Q1, worst since 2013

The European smartphone market had its worst first quarter in nearly a decade, and analysts at Counterpoint Research warned that things are likely to get worse before they get better. The market is down 12% compared to the first three months of last year. Smartphone shipments were only 49 million units, the worst first quarter since 2013. Only one of the top five brands experienced growth — Realme’s market share doubled.

Samsung remains the largest smartphone maker on the Old Continent. However, its shipments were still down 16% compared to the first quarter of last year. Apple actually rose by a percentage point (year-over-year), but its shipments also fell slightly (-6%).

Samsung’s Galaxy S22 series and Apple’s budget iPhone SE (third-generation) hit the market in the first quarter of this year, but they were unable to withstand the overall decline in the market. The slump is caused by a combination of factors – parts are still in short supply, made worse by China’s COVID-19-related lockdowns, rising inflation, and a war between Russia and Ukraine.

The impact of the war on the market has several aspects. First, Samsung and Apple pulled out of Russia. They used to ship around half of all smartphones in the country (though those shipments accounted for only 6% of the total in Europe). These companies pulled out towards the end of the quarter, so the full impact will be felt in the second quarter.

That’s part of the reason why analysts think things will get worse in the second quarter. It’s not just cell phone shipments, either, the war could reduce the supply of raw materials used to make electronics. Plus, the cost of living in European countries has risen sharply, so fewer people will buy new phones.

Looking further down, Xiaomi suffered the biggest drop – its shipments fell 36% compared to last year. OPPO maintained its share relative to other companies, but this still means fewer handsets shipped (figures include OnePlus ). Realme alone has shipped 67% more phones than it did in the first quarter of 2021, so it doubled its market share.

The European market was on a recovery path last year, with handset sales up 8% (relative to a weak 2020). But now that recovery has stalled, with a decline in the first quarter and bleak forecasts for the second quarter (and even for the next few quarters).

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