A report on the European smartphone market establishes a drop of 12%, but the drop is greater for Xiaomi with 36% less sales. Is the Chinese giant being caught up by another Chinese brand, Realme?
While forecasts call for global smartphone shipments to decline throughout 2022, the first quarter of this year is off to a bad start, with an overall drop of 12% in the European market. This is noted in a Counterpoint Research report published on June 15.
The health and geopolitical context in question
According to Counterpoint Research, “theThe decline was caused by a number of factors, including ongoing component shortages, COVID-19 related lockdowns in China, deteriorating economic conditions and the start of the Russian-Ukrainian war. “. Also, Jan Stryjak the associate director of the research institute, says that these contexts ” have been exacerbated by new economic and geopolitical challenges. Rising inflation levels in the region are impacting consumer spending “.
This 12% decline in the first quarter of 2022 compared to the same period last year may be partly driven by the interruption of smartphone shipments to Russia from Apple and Samsung. Even if the Russian market does not represent only 6% of total European smartphone shipments. […] However, the impact of the war may have wider ramifications if it leads to lower availability of raw materials, higher prices, additional inflationary pressure and/or the withdrawal of other suppliers from Russia. adds Stryjak. According to Counterpoint Research, the situation should not improve this year and the drop in deliveries should continue.
We could also ask ourselves if the smartphone market has not reached a certain maturity. It is possible that the potential public will now be equipped and that smartphones will be more and more durable, thanks to extensive software support for example.
You will also notice that while Apple is gaining market share by one point (from 24% to 25%), the general decline in sales of the entire smartphone market causes them to suffer a slight drop of 6% in sales. Clearly: if Apple is progressing a small step in the battle for the biggest seller, the Apple brand still sells fewer smartphones over this period.
Xiaomi is being overtaken by Realme in Europe
But on the table of market shares of smartphone deliveries in Europe during this first quarter of 2022, what is obvious is the fall in market shares of Xiaomi. The Chinese brand is at the end of the podium in Europe, behind Samsung and Apple. Note that in this report, Xiaomi includes the Redmi and Poco brands while Oppo includes OnePlus.
What is also obvious is the impressive rise of Realme, which is in fifth position, just behind Oppo. The brand (also Chinese) recorded a growth of 67% compared to the same period last year. We can then wonder if Realme would not be the new Xiaomi, the manufacturer approaching a similar strategy in relation to its pricing policy and the number of smartphones it releases. A significant growth of Realme that we also see in France, even if Xiaomi manages to maintain itself in France.
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