Canalys: European smartphone shipments reach 33.1 million units in Q1 2024

Canalys' latest research shows that the European (excluding Russia) smartphone market resumed growth in the first quarter of 2024, with shipments increasing by 2% year-on-year to 33.1 million units. This is thanks to the loose macroeconomic environment and the start of the update cycle for Android devices purchased during the epidemic.

Driven by the strong Galaxy S24 series and the updated low-end A-series product portfolio, Samsung was the largest supplier in the first quarter of 2024 with a market share of 37%. Apple ranked second with a market share of 22%. Xiaomi, Motorola and Honor ranked in the top five with market shares of 16%, 6% and 3%, respectively.

Canalys analyst Runar Bjørhovde said: "The price range is becoming more polarized as the high-end market tends to be ultra-premium and the mass market tends to be more low-end. In the first quarter of 2024, the premium share of smartphones in Europe was the highest ever, with smartphones priced at $800 and above accounting for 32% of shipments. The performance of the high-end market was driven by Samsung's Galaxy S24 series, which benefited from large-scale marketing investments to highlight the Galaxy AI, as well as a large number of discounts and bundle promotions. Galaxy S series shipments in Europe increased by 58% year-on-year to 4.3 million units in the first quarter of 2024. Despite the strong performance of high-end devices, the average selling price increased by only 2% due to the recovery of demand for low-end devices in the region. This improvement in demand is reflected in the list of the top ten most shipped devices, such as the Samsung Galaxy A15 and Xiaomi's cheaper models such as Redmi 13C and Redmi Note 13 4G are more popular. Improved demand at the low end will be critical for the market to return to growth in 2024."

“For the rest of the year, AI features will lead vendors’ communications with European consumers, especially those seeking to strengthen their presence in the premium market,” said Bjørhovde. “In a recent Canalys study on Europeans’ views on AI features on smartphones, 40% of respondents were positive that AI features could improve the smartphone experience. But the gap between interest and purchase intent can be large. AI features should therefore be used holistically and in a balanced way as part of wider product and brand marketing, as the average European consumer is cautiously optimistic about AI features on smartphones. Marketing hype and overuse of AI will raise unmet consumer expectations, lead to brand dilution and reduce consumer trust.”

Canalys forecasts that the European smartphone market (excluding Russia) will grow by 1% in 2024 as demand remains modest as device lifecycles lengthen. Bjørhovde added: “AI will remain primarily a medium- to long-term aspiration for consumers and vendors and is unlikely to drive significant demand this year. Over the coming year, vendors must prioritize adapting their device designs to comply with the EU’s Ecodesign Directive, which will increase smartphone requirements for software updates, durability, and repairability. Finding a balance between sustainability, compliance, AI, brand reinforcement, and hardware innovation will be critical for vendors to succeed in Europe by 2030.”