Financial industry news on May 25 Canalys report shows that in the first quarter of 2023, due to the difficult economic situation, resulting in a decline in consumer demand and a prolonged purchase cycle, the smartphone market in Western Europe continued to remain sluggish, with shipments falling by 13% to 23.7 million units. But the market is likely to see the light of day next year, with Canalys' latest forecast that Western Europe could grow by 6% in 2024.
In the first quarter of 2023, Samsung fell 16% year-over-year, but still topped the list with a 35% market share. The brand's most impressive models are: the S23 Ultra, S23 and A14, as well as last year's A53 and A33. Canalys analyst Runar Bjørhovde said: "Samsung has intensified its tilt towards the mid-to-high-end market in Western Europe because of the better revenue outlook, higher margins and greater potential for ecosystem integration. In the first quarter of 2023, Samsung's average selling price increased by 11%, and the total value of shipments decreased by 6%. To strengthen its presence, Samsung invests heavily in brand and product advertising, MDF, and joint marketing programs with carriers and retail chains. The investments are also to prevent Apple from taking away the championship position, as Apple's market share has increased to 33%. Driven by the sales of iPhone 14 Pro and Pro Max devices, Apple's shipments in the current quarter increased by 1% compared to the first quarter of 2022. According to the Canalys consumer insights study, Apple remains the most resilient player in Western Europe, with the most loyal user base in the region and attractive to consumers planning to switch. ”
The third-place manufacturer Xiaomi had a market share of 15%, but shipments fell 17% year-on-year. The main drivers of Xiaomi's performance are Redmi and Redmi Note, with Spain, Italy and Germany as its main markets. Xiaomi remains focused on the low-to-mid-end market, which helps the brand continue to lead other Chinese players in the rankings. Xiaomi's sales strategy is more focused on profitability, with smaller sales teams focusing on major operators and retail chains. OPPO and TCL ranked fourth and fifth, respectively, with 3% market share each, with shipments down 53% and up 19% year-over-year, respectively.
Kieren Jessop, research analyst at Canalys, said: "In addition to the top three with a solid position, competition from other brands has intensified. In the first quarter of 2023, OPPO, TCL, Google Pixel, Motorola, Honor and HMD Global performed similarly, with some brands investing heavily in the region to significantly improve market performance. As a result, this ranking could see significant changes before the end of 2023. ”
In the first quarter of 2023, shipments of models priced above $800 surged and now account for 41% of the market, up from 35% last year. Jessop added: "Apple and Samsung are the dominant brands in this price segment, and other brands need to continue to invest heavily if they want to open up the market. But in order to maintain short-term growth, manufacturers may need to meet the demand of low-price segments and help achieve this goal through more aggressive promotions. Especially in the sub-$400 segment, it is easier for vendors to deploy. ”
Bjørhovde noted: "Recent economic performance has allowed the operator channel to recover from the downturn in the pandemic, which now has a share of just over 50%. The driving forces behind this recovery include more attractive installment options and targeted bundled offers for target groups that are increasingly focused on mid-to-high-end devices. At the same time, equipment prices in Western Europe climbed sharply, with average selling prices reaching a record high in the first quarter of 2023, up 16% from the first quarter of 2022 and 29% from the first quarter of 2019. ”
In addition, operators are building closer relationships with retail chains to expand their customer reach, with offering bundled device subscriptions being the most common practice. In a complex channel structure, where retail chains may package devices and subscription services on behalf of operators, vendors must build close relationships with both parties to stand out from the competition and differentiate their partners' stores. As the way devices are purchased today is becoming more complex, forward-thinking vendors can leverage this complexity by forging strong partnerships across the channel to increase their market appeal.
Growth in 2024 will depend on how best manufacturers manage inventory, minimize costs, and optimize their path to market. Launching marketing campaigns that meet the needs of your local market, providing reliable customer service and channel support, is also key to success.
This article originated from the financial world