Canalys: European smartphone market to grow by 5% in 2024, Motorola becomes the top manufacturer with the largest annual growth.

Canalys's latest report (now part of Omdia) shows that the shipment of smartphones in Europe (excluding Russia) is expected to grow by 5% in 2024, marking the first growth after four consecutive years of decline. The demand for high-end smartphones remains strong, and the entry of mid-range smartphones purchased during the pandemic into the replacement cycle has provided growth momentum for the market. Samsung solidifies its position as the largest smartphone manufacturer in Europe, with a 6% growth in shipments in 2024, reaching 46.4 million units. Apple Inc. (AAPL.US) becomes the largest manufacturer in the fourth quarter of 2024, with a year-on-year shipment growth of 1% to 34.9 million units, driven by the positive market response to the iPhone 16 series and the sustained demand for iPhone 13 and 14. Xiaomi (01810) ranks third with shipments of 22.2 million units under the Redmi, POCO, and Xiaomi brands, remaining flat compared to 2023. Motorola achieves its best performance in Europe with a 26% growth in shipments, surpassing 8 million units. OPPO (including OnePlus) ranks fifth with a 13% growth in shipments, reaching 4.1 million units. Canalys analyst Runar Bjrhovde said, "The shipment of high-end smartphones in 2024 reached a historic high, with shipments of smartphones priced at $800 and above exceeding 41 million units, primarily driven by Apple Inc. and Samsung. For Apple Inc., the positive market response to the iPhone 16 series, as well as the mass deployment of iPhone 13 and 14 before the official cessation on December 28 to counter the impact of the EU USB-C regulations, are vital. The launch of the new iPhone 16e in Europe is crucial for Apple Inc., not only to help maintain competitiveness in the mid-range market but also to expand the coverage of Apple Intelligence devices before entering the EU market. For Samsung, the Galaxy S24 series has helped achieve the highest shipment of high-end smartphones since 2019. Its growth in the high-end market is attributed to efficient marketing activities around Galaxy AI and the Olympics, as well as comprehensive promotional strategies." Bjrhovde added, "Mass market devices made a strong comeback in 2024, intensifying competition and driving the early release of market demand. While Samsung and Xiaomi continue to dominate this segment, leading with extensive regional presence, they are facing challenges from emerging manufacturers focusing on core markets. Motorola achieved its historical peak in Europe in 2024, benefiting from its expansion throughout the region, especially in nurturing open-market channels. In the future, expanding physical sales networks and growth through telecom carrier channels will be key to its continued development. After experiencing two years of difficulties, OPPO's shipments have resumed growth in 2024, mainly due to its focus on the markets of Spain, Italy, Romania, and Portugal. Additionally, HONOR and realme achieved double-digit growth in 2024, further intensifying market competition and fostering anticipation among channels and consumers for the future market." Bjrhovde commented, "Manufacturers will face a complex situation in 2025, with the adaptation to the EU Ecodesign Directive being the most disruptive factor. Many product lines must be upgraded and adjusted by June 20 to meet the new requirements, including providing five years of software support and security patches. This directive will particularly impact the competitive landscape among mass market manufacturers, as potential price increases could quickly impact market demand due to limited profit margins. Samsung's decision not to launch the Galaxy A06 in Europe and to provide six years of software and security support for the Galaxy A16 is the most apparent case of manufacturers preparing to comply with the new regulations. During the industry transformation, manufacturers will prioritize operating profitability, driving overall business growth through expanding device ecosystem sales, developing service revenue, B2B business, and channel expansion. While the Ecodesign requirements have brought significant challenges to manufacturers, the true test for some manufacturers will come in 2027, when the EU will require batteries to meet specific standards, such as replaceability."