Europe’s smartphone market expected to grow 1% in 2024 as mass market demand picks up

In the first quarter of 2024, the European (excluding Russia) smartphone market resumed growth, with shipments increasing by 2% year-on-year to 33.1 million units. This was due to the easing of the macro economy and the renewal cycle of Android devices purchased during the epidemic. Samsung ranked first in the market with a strong Galaxy S24 series and an upgraded low-end A series product portfolio, accounting for 37% of the market share. Apple ranked second with a market share of 22%. Xiaomi, Motorola and Honor all ranked in the top five, with market shares of 16%, 6% and 3% respectively.

“The shipment gap between price segments is widening as the premium segment moves further towards the ultra-premium and the mass market moves towards the low-end,” said Canalys analyst Runar Bjørhovde. “The ultra-premium share of the European market hit a new high in the first quarter of 2024, with smartphones priced at $800 and above accounting for 32% of shipments. The premium segment was driven by Samsung’s Galaxy S24 series, which was driven by heavy investments in Galaxy AI marketing and a large number of trade-in and bundling promotions. Galaxy S series shipments in Europe grew 58% year-on-year to 4.3 million units. Despite the strong performance of premium products, average selling prices rose by only 2% as demand for cost-effective devices in the region recovered. This growth in demand is reflected in the top 10 devices with the highest shipments, which are highly represented by affordable models such as the Samsung Galaxy A15, Xiaomi’s Redmi 13C and Redmi Note 13 4G. Growth in demand in the low-end segment will be critical to the market’s recovery in 2024.”

“AI features will become a key communication point with European consumers in the second half of this year, especially for those seeking to expand their presence in the premium market,” said Bjørhovde. “A recent Canalys study of European consumers focused on their views on AI features in smartphones, with 40% of respondents agreeing that AI features can enhance the smartphone experience and are positive about it. However, there can be a large gap between consumer interest and purchase intent. Therefore, AI features should be incorporated into more product and brand marketing and used in a comprehensive and balanced manner, as the average European consumer is cautiously optimistic about AI features in smartphones. Excessive market hype and misuse of AI will increase the risk of unfulfilled consumer expectations, brand dilution and reduced consumer trust in the region.”

For a deeper look at consumers’ views on AI capabilities in smartphones, click on Canalys’ latest free report, “AI Phones: Present and Future,” which explores market developments, forecasts, market drivers, vendor strategies, market potential and consumer preferences.

Canalys predicts that the European smartphone market (excluding Russia) will grow by 1% in 2024 as market demand remains stable due to the extension of device life cycles. "AI features will continue to be a consumer and manufacturer expectation in the medium to long term, but are unlikely to drive significant demand this year," said Bjørhovde. "In the coming year, manufacturers will need to prioritize adjusting their device designs to comply with the EU's Ecodesign Directive, which will increase requirements for software updates, durability, and repairability of smartphones. Finding a balance between sustainability, compliance, AI, brand enhancement, and hardware innovation will be critical for manufacturers to succeed in the European market in the years leading up to 2030."

Source: Canalys