The Western European smartphone market continued to decline in the first quarter of 2023 – sales fell by 13% to 23.7 million units. Tough economic conditions are reducing consumer demand and extending smartphone lifespans, analysts say Canalys. A recovery in demand with growth of 6% is not expected until 2024.
Quarterly shipments of smartphones to Western Europe. Image source: canalys.com
Samsung regained the title of the largest supplier in the first quarter of 2023 in Western Europe with a market share of 35%. This could not be prevented by a 16% drop in sales compared to the previous year. This year’s Galaxy S23 Ultra, S23 and A14 as well as last year’s A53 and A33 were the top sellers. The Korean electronics giant was forced to shift its focus to the mid-range and high-end segments: the average selling price (ASP) rose 11%, while the total cost of devices shipped fell 6%. In addition, we have had to increase competition with Apple by investing heavily in brand and product promotions and in joint marketing campaigns with operators and retailers.
The largest smartphone suppliers in Western Europe
Apple fell to second place in Western Europe with a 33% market share. Compared to the first quarter of 2022, the company saw shipments increase by 1%, driven by the success of the iPhone 14 Pro and Pro Max. Apple remains the most stable vendor in the region and is supported by the most loyal audience.
Third with a 15% market share was Xiaomi, although its shipments were down 17% year over year. The main markets of the Chinese manufacturer are Spain, Italy and Germany, the most popular product lines are Redmi and Redmi Note. The company continues to control the low-end and mid-range segment and a small sales team works with major operators and retail chains. OPPO and TCL completed the top five with shares of 3% each, while the first shipment fell 52% year-on-year, while the second shipment rose 19%.
Distribution of sales according to price segments
The hottest competition is seen outside the top three – this is where OPPO, TCL, Google, Motorola, HONOR and HMD Global converged. The leaderboard order is expected to change by the end of the year. Another notable trend is an increase in sales in the $800+ price segment, traditionally dominated by Apple and Samsung. This segment now accounts for 42% of sales, up from just 35% a year ago. At the same time, the average selling price of smartphones in Western Europe increased significantly: by 16% compared to the first quarter of 2022 and by 29% compared to the same period in 2019, making the average selling price in the first quarter of 2023 the highest ever .
Growth prospects in 2024 will depend on suppliers’ ability to competently manage inventory, minimize costs and optimize go-to-market opportunities. Finally, the localization of marketing campaigns, customer support and sales channels will remain relevant.
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