The Canalys report has indicated that Samsung has bolstered its position as the largest smartphone vendor in Europe in 2024 by increasing shipments by 6 percent to 46.4 million units.
Samsung’s success was driven by demand for high-end devices, with the Galaxy S24 series achieving the brand’s highest premium sales volume since 2019. Effective marketing campaigns leveraging Galaxy AI and the Olympics, along with comprehensive promotions, played a crucial role in its growth.
In the mass-market segment, Samsung remained a dominant player despite increasing competition. The company strategically adapted to upcoming EU regulations by discontinuing the Galaxy A06 while extending software and security support for the Galaxy A16 to six years.
This move reflects Samsung’s preparation for the EU’s eco-design directive, which mandates five years of software support and security updates starting in June 2025. As the market evolves, Samsung continues to focus on operational profitability, expanding sales across its device ecosystem, and targeting revenue growth through services, B2B plans, and channel expansion.
AI focus
In the smartphone market, AI became a key differentiator, particularly in high-end devices. Samsung leveraged AI-driven features in its Galaxy S24 series, marketing them alongside major events like the Olympics.
Apple introduced the iPhone 16e to expand its AI-capable lineup, ensuring a stronger presence in the mid-range segment. AI-powered functionalities, such as enhanced photography, real-time language translation, and personalized user experiences, helped brands differentiate their products and drive consumer demand.
Strategies
Canalys, now part of Omdia, said smartphone shipments into Europe (excluding Russia) grew by 5 percent in 2024, marking the first growth year following four consecutive years of declines.
Smartphone vendors in Europe adopted various strategies in 2024 to drive growth and navigate market challenges. Samsung maintained its leadership by leveraging strong high-end demand, with the Galaxy S24 series achieving record premium sales. It focused on aggressive marketing, AI-driven innovations, and strategic product adjustments to comply with EU regulations, such as extending software support for the Galaxy A16.
Apple capitalized on the success of the iPhone 16 series while continuing to push older models like the iPhone 13 and 14 ahead of their discontinuation under the EU’s USB-C directive. The introduction of the iPhone 16e aimed to strengthen Apple’s mid-range presence and expand its AI capabilities in the region.
Xiaomi retained its position as the third-largest vendor by sustaining volume through its Redmi and POCO brands, but faced growing competition. Motorola achieved its best year in Europe by expanding its open-market presence and strengthening partnerships with telecom operators. OPPO, including OnePlus, returned to growth by strategically focusing on key markets such as Spain, Italy, Romania, and Portugal.
The market saw increasing competition from emerging brands like HONOR and realme, both of which achieved double-digit growth. As the EU’s eco-design directive introduces stricter regulations, vendors are adjusting portfolios, prioritizing profitability, and expanding revenue streams through services, B2B initiatives, and ecosystem sales.
Challenges
In 2025, smartphone vendors in Europe will face significant challenges, primarily driven by regulatory changes and intensifying competition. The EU’s eco-design directive, requiring five years of software support and security updates from June 20, will force many brands to upgrade and refresh their product portfolios.
Compliance with these regulations will be particularly difficult for mass-market vendors, as tight margins could lead to price increases that may weaken demand. Samsung has already adapted by discontinuing the Galaxy A06 and extending support for the Galaxy A16, signaling the adjustments required for all manufacturers.
Beyond software regulations, the EU’s upcoming battery standards, set to take effect in 2027, will add further complexity, particularly regarding battery replaceability. Vendors must prepare for these long-term changes while managing short-term pressures.
New brands are gaining traction and established players like Motorola, OPPO, and HONOR expanding aggressively. Economic factors, shifting consumer preferences, and the increasing cost of innovation will also test vendors’ ability to sustain profitability.
Baburajan Kizhakedath