European Smartphone Market to Grow by 1 Percent in 2024

Canalys’ latest research shows that growth returned to Europe’s (excluding Russia) smartphone market in 1Q24 as shipments grew 2% year on year to 33.1 million units. This was thanks to easing macroeconomic conditions and the start of an Android refresh cycle for devices bought during the pandemic.

Samsung was the largest vendor in the quarter, with a 37% market share, driven by the strong Galaxy S24 series and a portfolio refresh of its low-end A series. Apple came second with a 22% market share. Xiaomi, Motorola, and HONOR completed the top five, taking 16%, 6% and 3% market shares, respectively. Apple’s iPhone 15 Pro Max was the bestseller with 2.6 million shipments, ahead of the iPhone 15 Pro, Galaxy S24 Ultra, and Galaxy A15 tied for the second place, each with 1.6 million shipments. iPhone 15 recorded 1.4 million shipments, Redmi 13C and Galaxy A15 5G 1.2 million, Galaxy S24 and Redmi Note 13 4G 1.1 million, and Galaxy A25 5G 0.9 million shipments.

“The split between the price segments is increasing as the premium segment skews more toward the ultra-high-end and the mass market skews more toward the low end,” said Canalys Analyst Runar Bjørhovde. “1Q24 had the highest premium share in Europe for a Q1 ever, as smartphones costing $800 and above made up 32% of shipments. The premium market’s performance was driven by Samsung’s Galaxy S24 series, which was aided by a large marketing investment highlighting Galaxy AI alongside significant trade-in and bundling promotions. Galaxy S series shipments into Europe grew by 58% year on year to 4.3 million units. Despite the high-end’s strength, the ASP increased by only 2%, caused by a regional resurgence in demand for budget devices. This improved demand is reflected in the high presence of budget-friendly models in the top ten most-shipped devices list, such as the Samsung Galaxy A15 and Xiaomi’s Redmi 13C and Redmi Note 13 4G. Improved low-end demand will be vital for the market to return to growth in 2024.”

“AI capabilities will front vendors’ communication to consumers in Europe for the rest of the year, particularly for those vendors seeking to strengthen their premium segment presence,” said Bjørhovde. “In a recent consumer study conducted by Canalys focused on the European perception of AI capabilities on smartphones, 40% of respondents claimed to be positive about what AI features can add to their smartphone experience. However, the gap between interest and buying intent is likely to be large. Consequently, AI capabilities should be used holistically and balanced as a part of wider product and brand marketing, as the average European consumer is cautiously optimistic about AI capabilities on smartphones. Jumping on the marketing hype and overusing AI will increase the risk of unmet consumer expectations, brand dilution, and reduced consumer trust in the region.”