Three major tech giants are carrying the European smartphone market

The ongoing economic turmoil continues to darken the outlook for the European smartphone market, as illuminated by the recent findings from Counterpoint Research’s Market Monitor service. The statistics portray a sharp 23% year-on-year downturn in smartphone shipments in the first quarter of 2023, casting a grim shadow over the sector. Inflation, high-interest rates, skyrocketing energy costs, along with the continued conflict between Russia and Ukraine have driven consumers to adopt a conservative stance towards discretionary expenditure. These circumstances have led to the first quarter of 2023 witnessing the lowest volume of smartphone shipments in Europe since the second quarter of 2012.

In the midst of market competitors facing harsh downturns, Apple's setback was relatively subdued. Jan Stryjak, Associate Director at Counterpoint Research, touched on this scenario, commenting, “The escalating cost-of-living crisis has relentlessly burdened European consumers, rendering the outset of 2023 particularly challenging. However, the market has not been devoid of positive movements. Despite experiencing a dip in market share compared to the corresponding period in 2022, Samsung preserved its market leadership with the successful rollout of its flagship Galaxy S23 series, which surpassed the S22 and S21 models in performance. Conversely, Apple experienced a marginal year-on-year increase in market share, primarily attributed to its relatively less severe decline compared to its rivals. Yet, in these tough times, Xiaomi emerged as the leading player, being the sole major vendor to witness year-on-year growth, marking a recovery from a disappointing first quarter in 2022.”

Three major tech giants are carrying the European smartphone market

Projecting into the remaining months of 2023, Stryjak projected a cautious optimism. He noted, “Our forecast had suggested that the prevailing conditions would deteriorate before displaying signs of recovery, and regrettably, the first quarter of 2023 confirmed our predictions, recording the lowest quarter for smartphone shipments in Europe in over a decade. Nonetheless, we persistently hold a positive view that the economic stresses will progressively recede in the forthcoming quarters, consequently bolstering consumer confidence. We foresee a more upbeat closure to the year, which should resonate in the performance of the European smartphone market.”

Despite the present hurdles, both market actors and consumers nurture hopes for the European smartphone market to regain its stride as the economic conditions reach a steady state. The introduction of cutting-edge and feature-packed flagship models, exemplified by Samsung’s Galaxy S23 series, is expected to play a crucial role in drawing consumers back to the market. Furthermore, Xiaomi’s resilience in its bounce-back from an unremarkable first quarter in 2022 serves as a beacon of hope for other vendors. Despite ongoing obstacles, the European smartphone market is braced for a potential resurgence in the near future.

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