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European Smartphone Market Analysis, Samsung Retains Lead With Huawei Catching Up

Smartphone sales In Europe have been declining since the start of the year. According to the Counterpoint report, the market was down 7% year-on-year and 23% quarter-on-quarter in Europe during Q2 2020 amid the COVID-19 outbreak,. The impact of the pandemic was relatively stronger for Western Europe, down 9% YoY than for Eastern Europe, down 5% YoY. Amid the COVID-19 outbreak, Italy was the worst affected of all European countries, driving the smartphone market to a 21% YoY decline.

Samsung held the largest share of the European market with Apple in the second spot, followed by Huawei. Samsung continues to lead the chart for 2020. This is driven by Samsung’s diversified portfolio across all price bands. Also, marketing campaigns around the Galaxy S20 launch boosted its overall sales.

Apple remained flat for the quarter and showed its resilience during the COVID-19 crisis. The iPhone 11 series performed well, despite a lack of supply in some markets and some channels. However, the expensive models slowed considerably in the period.

Huawei is catching up lately with the help of its co-brand HONOR. OPPO and Xiaomi are also very aggressive and are strengthening their base in the European market. Commercialization of 5G is starting in European operators such as Swisscom and Sunrise in Switzerland. However, we think the impact on the market in 2020 will be modest.

In Western Europe, Huawei consumed the share of smaller players including local brands. Despite Huawei’s strong share growth, Samsung gained share thanks to the positive acceptance of its refreshed Galaxy A series and S series smartphones. Sales of Samsung were particularly high in Germany, the UK, and Italy.

However, Samsung and Apple’s time as the unchallenged leaders of the European smartphone market has come to an end, according to the breakdown of smartphone shipments in Europe by the vendor. Huawei’s share of the market has grown from just two percent in the first quarter of 2015, to 18 percent in the second quarter of 2020, placing the company slightly behind Apple in Europe.

While the total share of the European market held by Samsung, Huawei, and Apple has fluctuated during this time, they still accounted for more than 50 percent of the total market in the second quarter of 2020. Rather than the larger manufacturers, it has been the smaller manufacturers such as LG, ZTE, and Lenovo that have seen their share of shipments decline.

The rise in the adoption of smartphones in Europe is expected to majorly drive market growth as they offer seamless connectivity to the digital world. Mobile phone plays an important and vital role in modern-day to day life. Nowadays, phones allow users to access the internet, take pictures, listen to music, and store data all at once. People also add value to their mobile phones through different mobile accessories that enhance the functionality of the equipment and protect it from damage.

Presently, the mobile accessories market experiences significant growth. An increase in sales of smartphones fuels the demand for mobile accessories. A rise in the purchasing power and changes in the lifestyle of people are the key factors that boost the sales of mobile phone accessories. Companies such as Bose Corporation, Apple Inc., and Samsung Electronics are the prominent manufacturers of mobile phone accessories in Europe.

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