Total smartphone shipments in Europe (excluding Russia) for Q1-2025 stood at 32.4 million, down 2 percent from 33.1 million in Q1-2024, according to Canalys (now part of Omdia).
In Q1 2025, Samsung shipped 12.2 million smartphones, slightly increasing its market share to 38 percent from 37 percent in Q1 2024, when it shipped 12.1 million units.
Apple shipped 8.0 million units in Q1 2025, up from 7.3 million in Q1 2024, gaining market share from 22 percent to 25 percent.
Xiaomi shipped 5.3 million units in Q1 2025, a slight decline from 5.4 million in Q1 2024, maintaining its 16 percent market share.
Motorola saw a drop in shipments from 2.1 million in Q1 2024 to 1.7 million in Q1 2025, with its market share declining from 6 percent to 5 percent.
Google shipped 0.9 million units in Q1 2025, up from 0.6 million in Q1 2024, increasing its market share from 2 percent to 3 percent. The “Others” category saw shipments decline from 5.6 million in Q1 2024 to 4.4 million in Q1 2025, with market share dropping from 17 percent to 13 percent.
There was erosion in entry-level device sales and there was also an increasing concentration of market power in the hands of Apple and Samsung.
The collapse of the sub-€200 segment — the lowest quarterly shipment volume in over a decade —signals a structural shift in consumer demand, Runar Bjorhovde, Senior Analyst at Canalys, said. After a mild recovery in 2024, many smartphone vendors overestimated demand, leading to an inventory overhang heading into 2025. Saturation of replacement demand, coupled with aggressive promotions and rising competitive pressures, has hit the budget segment hard.
Xiaomi and Motorola, traditionally strong in this price tier, bore the brunt of the decline, although Xiaomi’s marginal 2 percent drop shows surprising resilience amid challenging conditions.
In stark contrast, Apple and Samsung are pulling away from the pack. Samsung led the market with 12.2 million units shipped, buoyed by record-high volumes of the Galaxy S-series and its highest-ever average sales price (ASP) in Europe — a sign of the premiumisation trend taking hold. Apple, meanwhile, saw iPhone shipments grow 10 percent to 8 million units, driven by strong end-user demand and the initial sales impact of the iPhone 16e. Both brands now command a disproportionate share of market influence, with their premium-focused strategies seemingly shielding them from the volatility affecting the lower tiers.
The entry of Google into the top five — with 0.9 million units shipped — highlights the fragmentation in the Android landscape and the struggles of legacy budget players to maintain relevance. Meanwhile, the structural challenges in the market — such as new regulatory pressures from eco-design and battery directives — are likely to squeeze margins further, especially in the already fragile budget segment.
Looking ahead, Canalys forecasts a 3 percent decline for the European smartphone market in 2025, but a modest return to 1 percent growth in 2026. However, the path forward will not be smooth. Vendors face a triple squeeze:
Demand-side pressures from consumer fatigue and slower upgrade cycles.
Cost-side pressures from new regulations and sustainability mandates.
Competitive pressures from the dominance of Apple and Samsung in the premium space and the erosion of the low-end market.
In this environment, success will hinge on operational efficiency, profitability over volume, and a sharper understanding of evolving consumer behaviour. Differentiation is increasingly elusive, and capturing end-user curiosity requires more than just hardware — brand, ecosystem, and user experience will be critical levers in a market where price competition alone is no longer a winning strategy.
In summary, Europe’s smartphone market in 2025 is not just shrinking — it’s polarising. Apple and Samsung are consolidating their dominance, while the rest scramble for relevance. The message for vendors is clear: adapt or risk being squeezed out in a market that’s becoming less forgiving with each passing quarter.
Baburajan Kizhakedath
