Challenges lie ahead for smartphone makers in Europe, but it’s not regulation this time
The EU is one of the biggest smartphone markets in the world, and it’s one that enjoys loads of requirements from regulators. The EU has only recently enacted a ruling forcingall manufacturers to use USB-C on their handsets, and it’s one of the few markets in the world that still requirephysical compliance markson phones. Now, another problem is brewing for smartphone manufacturers:According to Counterpoint, sales are down 12% lower in Q1 2022 in Europe compared to the same timeframe in 2021, and it doesn’t look like this trend will reverse soon.
Even though the world has been stumbling from one crisis to another these last couple of years, smartphone sales were surprisingly consistent and partially still growing. It looks like this is coming to an end, though, with Counterpoint reporting the lowest first quarter total since Q1 2013. The only top five vendor that managed to grow in the European market this quarter was Realme, which has just entered the market in 2019. Samsung and Apple both saw moderate losses at 16 and 6%, respectively, while Xiaomi’s sales fell by a whopping 36%, purportedly mostly due to component shortages. Samsung is still the largest manufacturer in Europe, though, and could actually build out its market share to its highest number since Q3 2020.
Interestingly enough, Counterpoint reports that Google and Nokia were both the fastest growing manufacturers, showing that Google’s redesigned Pixel 6 and 6 Pro lineup and its push into the hardware market may have been a good move. Meanwhile, Nokia is trying to enter the market from the bottom, focusing on great entry-level devices and only slowly climbing the ladder to higher-end phones — a strategy that seems to pay off, too.
Counterpoint says that the development is likely a reaction to rising inflation, the aftermath of Covid-19, and new geopolitical tensions, which points to a longer-term trend rather than just an anomaly. Another reason for Samsung and Apple’s losses is their departure from the Russian market, which Counterpoint counts as part of Europe in its statistics. Since Russian shipments only make up 6% of Europe’s total shipments, this point might be negligible in the grand scheme of things.
It might take some time until the smartphone market recovers, and Q2 2022 might bring even more dire news. This is when the Russian attack on Ukraine fully took effect, with inflation rising ever higher and Samsung and Apple’s withdrawal from the Russian market mostly fulfilled.
PlayStation Plus subscribers of all tiers are getting access to three excellent titles, including Psychonauts 2, in September
It’s $30 off for a limited time
It’s time to sniff out the culprit
Google is still searching for answers
Pixel downsides never change
$135 is its lowest price in months
