There are already signs of increased demand for smartphones in Europe In numbers

The latest research from Canalys shows that smartphone sales in Europe (excluding Russia) fell by 6% year-on-year to 32 million in the third quarter of 2023. Although the third quarter marks the tenth consecutive quarter of annual decline, there is Signs of this. Demand is increasing as we approach 2024.

On the list of suppliers, Samsung remained in first place with a market share of 35%, despite a 6% decrease in sales. Apple came in second with a 22% share and a 13% decline, partially offset by the strong performance of the iPhone 15. Overall, Samsung and Apple’s performance shows resilient demand for the latest premium devices, even as the high-end segment begins to shrink. “The difficult demand environment particularly affected Apple and Samsung in the third quarter, despite the launch of their products,” notes Runar Bjorhovde, an analyst at Canalys.

In Apple’s case, its decline was primarily due to a rapid decline in sales of older models compared to the third quarter of 2022. This decline was partly due to avoiding excess inventory of the iPhone 14 and earlier models, which should be phased out by 2022. End of year 2024 to comply with the European Commission’s USB-C directive. In contrast, the iPhone 15 got off to a strong start, with sales in its launch quarter increasing by 59% compared to the iPhone 14. Lower launch prices across the region supported the phone’s performance.

Samsung’s decline was due to its low-quality A series, which the company deprioritized due to its revenue and profitability goals. The move prompted Samsung to increase its average sales prices in Europe, strongly supported by a 38% annual growth in its foldable sales, along with the strong performance of its mid-range A and S series.

Behind the top two positions, the market situation started to improve as most sellers grew sequentially in the third quarter. Xiaomi took third place on the leaderboard with steady annual growth, an improvement after six consecutive quarters of decline. Motorola continued its progress in Europe and increased its sales by 30% year-on-year. TCL occupied the top five positions, with 5% growth year-on-year.

Growth forecasts

“Although the whole of 2023 will see the lowest number of smartphone sales in more than a decade, there are signs that the market will improve as we approach 2024,” Bjorhovde emphasizes. “Canalys expects the market to grow by 4% in 2024. The refresh cycle for mid-range devices purchased in 2020 and 2021 should provide opportunity for vendors in the first half of the year. The remainder of this year remains important for vendors looking to recover Their performance in 2023, starting 2024 with positive momentum and clear channel inventory ahead of new product launches in the first half of 2024.

Given cautious consumer spending this year, sellers are hoping buyers who delayed their purchases will emerge in search of attractive deals and promotions during the holiday shopping season. However, profitability remains key for all players and hence, consumers should watch out for occasional false discounts amid intense competition on prices and discounts.