Smartphone market — Fierce Competition Drives Change in European Smartphone Market

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smartphone market — The European smartphone market has seen a notable shift, with a decline of 1 per cent to 134.2 million units in 2025, according to market analysts Omdia. This represents the culmination of a year marked by subdued demand and the introduction of new eco-design and USB-C regulations.

Samsung continues to hold its ground as Europe’s largest smartphone vendor, recording shipments of 46.6 million units. Despite a sluggish start to the year—attributed to the absence of the Galaxy A0x series—Samsung managed a strong rebound in the latter half, driven by a budget-friendly version of the Galaxy A16 and the Galaxy A56, which was the top-selling model in Europe.

Apple also made significant strides, achieving a 6 per cent increase in shipments to 36.9 million units, securing a record 27 per cent market share. The demand for the new iPhone models, particularly the iPhone 16 and its Pro Max versions, fuelled this growth. The iPhone 16e, which replaced discontinued models, also contributed to Apple’s success in the region.

Xiaomi maintained third place with a 16 per cent market share, despite a slight 1 per cent decline in shipments to 21.8 million units. The performance of Xiaomi is largely credited to its budget-friendly Redmi series, as well as its expansion strategy into Europe with new retail stores.

Motorola, while remaining in fourth position, experienced a 5 per cent drop in shipments to 7.7 million units. The company faced challenging market conditions in the first half of 2025 but rebounded in the fourth quarter, aided by growth in key markets such as Poland, Italy, Spain, and the UK.

Entering the top five for the first time, HONOR grew by 4 per cent to 3.8 million units, largely due to its affordable X-series devices. This growth reflects the brand’s strategy to increase its presence and relevance in the market, aligning with its long-term ambitions to move into the premium segment.

Runar Bjorhovde, senior analyst at Omdia, commented on the competitive landscape: “Europe’s five largest smartphone vendors continued to gain combined share, reflecting the importance of scale for long-term success in the region.” He highlighted that while the major players are seizing greater market share, fierce competition remains, with a need for differentiation among vendors.

Despite challenges, several smaller brands, including vivo, Nothing, and Fairphone, have shown remarkable growth, indicating opportunities for differentiation in a competitive market. Bjorhovde noted, “These vendors are excellent examples that there are opportunities through strong differentiation even in such an established, mature and highly competitive region.”

Looking ahead, Bjorhovde expressed concerns about the outlook for 2026, particularly regarding memory pricing. He stated that Europe accounted for just 10.8 per cent of global smartphone shipments in 2025 and raised the question of which vendors would prioritise the region amid potential price increases or supply shortages.

“We expect the largest vendors to be more resilient due to their scale and price-band coverage,” he added, suggesting that smaller vendors must navigate the balance between different regions effectively. “Scaling a smartphone business within Europe can be very gradual and challenging, requiring consistent investment over time, making it very costly to scale back,” he noted.

Despite short-term difficulties, Bjorhovde emphasised the importance of capturing consumer interest and demand. “Both vendors and channel partners need to find key differentiation points, target core influence stages in the buying journey, and retain customers more effectively than ever before,” he concluded.

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