Core Insights - The European smartphone market (excluding Russia) faced a challenging start in Q1 2025, with shipments declining by 2% year-on-year to 32.4 million units [1][8] - After four consecutive years of decline, the market saw a rebound in 2024, with total shipments reaching 136 million units, a 5% increase [3] - High-end smartphone demand remained strong, with devices priced above €800 accounting for a record 32% of shipments, driven mainly by Apple and Samsung [3][5] Market Performance - Samsung led the market with 12.2 million units shipped, maintaining a 38% market share, while its Galaxy S series achieved a record high with a 12% year-on-year increase [5][8] - Apple ranked second, with shipments increasing by 10% to 8 million units, capturing 25% of the market share, despite regulatory pressures regarding its advertising policies [5][6] - Xiaomi showed resilience with a slight decline of 2% in shipments to 5.3 million units, holding a 16% market share [6][8] - Motorola experienced a significant drop of 19% in shipments to 1.7 million units, resulting in a 5% market share [6][8] - Google saw a substantial increase of 43% in shipments to 900,000 units, achieving a 3% market share, marking its first entry into the top five in Europe [6][8] Competitive Landscape - The entry of new competitors and aggressive promotions led to a saturated market, particularly affecting entry-level devices, which saw their lowest shipment levels in over a decade [3][5] - OPPO fell out of the top five rankings, as its new Find N5 model did not launch in Europe [6][9] - Counterpoint Research reported a different market scenario, with Honor achieving a 20% year-on-year growth and a 4% market share, indicating varying perspectives on market dynamics [9][10] Future Outlook - Canalys predicts a 3% decline in the European smartphone market for 2025, but anticipates a 1% growth in 2026, suggesting potential recovery [10] - The emphasis for manufacturers will be on improving operational efficiency and profitability to ensure long-term stability in a competitive environment [10]