Canalys·2025-05-28 03:26Core Insights - The European smartphone market (excluding Russia) experienced a 2% year-on-year decline in shipments in Q1 2025, totaling 32.4 million units, primarily due to weak demand for entry-level devices [1][2][3]. Group 1: Market Performance - Samsung maintained its position as the market leader with 12.2 million units shipped, showing a slight increase, while its Galaxy S series achieved record high shipments, contributing to the highest average selling price (ASP) in Europe [1][5]. - Apple ranked second with a 10% year-on-year increase in shipments to 8 million units, driven by strong terminal demand and initial channel stocking of the iPhone 16e [1][5]. - Xiaomi demonstrated resilience with a minor decline of 2% in shipments to 5.3 million units, remaining in the top three for the 20th consecutive quarter [1][5]. - Motorola and Google ranked fourth and fifth, with shipments of 1.7 million and 0.9 million units, respectively, with Google entering the top five for the first time [1][5]. Group 2: Entry-Level Device Trends - The demand for entry-level devices significantly declined, with shipments of devices priced below 200 euros reaching their lowest level in over a decade, reflecting a challenging demand environment [2][3]. - Companies relying on devices priced under 400 euros faced difficulties, with inventory buildup due to overestimated terminal demand at the end of Q4 2024 [3]. Group 3: High-End Market Dynamics - The high-end segment, driven by Apple and Samsung, saw a record 32% share of devices priced above 800 euros in Q1 2025 [5]. - Apple's strong performance continued despite existing inventory of older models, with double-digit growth in shipments [5]. - Samsung achieved its highest quarterly high-end device shipments, with a 12% year-on-year increase in Galaxy S series shipments, supported by aggressive promotional strategies [5]. Group 4: Market Outlook and Challenges - The long-term competitive landscape is increasingly favoring Apple and Samsung, raising concerns among channel partners about market share and profitability, especially in the competitive entry-level segment [6]. - Canalys forecasts a 3% decline in the European smartphone market for 2025, with a potential recovery of 1% growth in 2026 [6].