Europe’s smartphone market recorded growth in the first quarter of 2026, reflecting resilient demand despite mounting supply risks. According to market research firm Omdia, smartphone shipments in Europe (excluding Russia) rose by 2 per cent year-on-year, totalling 33.0 million units in the first quarter of 2026. This increase was primarily supported by healthy end-user demand and proactive channel frontloading.
- Despite some price increases and fewer discounts compared to previous years, vendors and channel partners are more focused on what lies ahead in the second quarter of 2026.
Smartphone market: Rising Supply Costs and Potential Bottlenecks
Despite the positive growth, the report highlights concerns regarding rising supply-side costs and the risk of availability bottlenecks that could impact the market in the upcoming months. The analysis indicated that while demand remains strong, these supply challenges may hinder further expansion.
Vendor Performance: Samsung and Apple Lead the Way
Samsung maintained its status as Europe’s largest smartphone supplier, with shipments increasing by 3 per cent to 12.6 million units. This growth was attributed to effective discounting strategies, especially for the Galaxy A16 4G, which mitigated delays in the launch of newer flagship and mid-range devices.
Apple, on the other hand, experienced significant growth, with iPhone shipments rising by 9 per cent to 8.8 million units. This surge was largely driven by robust demand for the iPhone 17 series and a broader mid-range product offering. Notably, Apple achieved this growth with fewer and smaller discounts, which underscores its strong premium market positioning.
Xiaomi Faces Decline, Yet Premium Pricing Grows
Xiaomi, despite holding the third position in the market, saw a decline in shipments by 15 per cent, totalling 4.5 million units. The brand’s exposure to supply-side disruptions contributed to this drop. However, Xiaomi’s average selling price increased by 21 per cent year-on-year, reflecting strong performance in its premium device segments, particularly in key European markets such as France, Germany, and Spain.
Gains for Motorola and OPPO
Motorola made notable strides, with shipments rising by 17 per cent to 1.9 million units, largely due to rapid expansion in Spain and Portugal. OPPO also reported growth of 9 per cent, achieving 1.3 million units, aided by its return to the French market and expansion efforts in Eastern Europe. OPPO is currently restructuring its portfolio to integrate brands like realme and OnePlus, aiming to strengthen its presence in the European market.
HONOR Emerges as a Rapidly Growing Player
HONOR has emerged as the fastest-growing major vendor within the European smartphone market, boasting a remarkable increase of over 60 per cent in shipments year-on-year. This growth is primarily driven by the brand’s expansion into lower price tiers, catering to a broader audience.
The Role of Channel Dynamics
Runar Bjorhovde, principal analyst at Omdia, noted, “Demand remains healthy in Europe’s smartphone market as shipments were boosted by the ongoing replacement wave alongside channel partners expanding their inventories.” He emphasised the importance of channel dynamics, particularly in a market where the top three vendors command nearly 80 per cent of market share.
Despite some price increases and fewer discounts compared to previous years, vendors and channel partners are more focused on what lies ahead in the second quarter of 2026.
Average Selling Prices Reach New Heights
The report also highlighted a sharp rise in average selling prices, which have reached a record €580 in the first quarter of 2026. This increase can be attributed to a reduced availability of lower-cost devices, with smartphones priced below €200 accounting for only 25 per cent of total shipments, marking an all-time low.
Bjorhovde stated, “Focus from both vendors and channel partners has shifted from volume to value to deliver results and operational sustainability.” Many manufacturers are now targeting less price-sensitive consumers who are more willing to upgrade their devices.
Outlook Remains Cautious Amid Supply Concerns
Despite the promising start to 2026, the outlook remains cautious, primarily due to concerns surrounding supply chain constraints, particularly in memory components. Bjorhovde remarked, “The first quarter of 2026 delivered beyond expectations, but the outlook remains bearish as the rapidly escalating memory bottleneck worsens.” Omdia forecasts a 12 per cent decline in smartphone shipments across Europe for 2026, with most of the contraction anticipated in the latter half of the year.
Future Market Trends and Inventory Levels
The report anticipates that inventory levels will remain elevated in the near term as companies prepare for expected price increases. A medium-term market correction is expected, as stabilising component costs may prompt vendors and distributors to lower stock levels. Bjorhovde concluded, “Both vendors and channel partners need to remain highly agile within the evolving market conditions but must ensure that their focus remains on attracting end-buyers and strengthening their brands for long-term success.”
