Slumping budget phone shipments in Europe actually benefited carriers in Q2

European Smartphone Market Q2: Budget Slump Boosts Carrier Performance

New data from Counterpoint Research sheds light on the European smartphone market's performance in the second quarter (Q2) of the year. While overall shipments saw a dip, the dynamics between retail and carrier channels reveal an interesting shift. During April to June, total smartphone shipments in Europe reached an estimated 35 million units. However, a closer look at the distribution reveals that the challenges in the budget segment disproportionately impacted open market sales, ultimately benefiting mobile network operators.

Shipments through independent retailers, often referred to as the "open market," experienced an 11% decline compared to the same period last year. In contrast, sales facilitated by carriers saw a more modest decrease of just 4%. This divergence is largely attributed to the ongoing global memory chip shortage, which has significantly impacted the availability and production of entry-level smartphones – a segment heavily dominated by retailer sales.

Counterpoint's analysis indicates that carriers typically focus on selling higher-tier devices. As the budget segment contracted, the proportion of higher-value sales through carrier channels increased. This trend also played out at the brand level, with Apple surpassing Samsung in carrier shipments for Q2, capturing a 37% market share compared to Samsung's 33%. Vivo and Motorola emerged as notable fast growers within the carrier segment. Looking ahead, Counterpoint analysts predict this trend of carrier shipment growth outpacing retail sales to continue, suggesting a lasting impact of the budget market's challenges on the broader European smartphone landscape.

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