Canalys found smartphone shipments across Europe dipped 2 per cent year-on-year in Q1 2025 due to weak demand for entry level devices, even as premium models fared well.

A total of 32.4 million smartphones were shipped across Europe, excluding Russia, down from 33.1 million in Q1 2024. Runar Bjorhovde, senior analyst at Canalys flagged sluggish demand for budget devices under €400 as a key factor for the fall, with entry-level models below €200 hitting their lowest shipment volume in more than a decade.

However, premium smartphone sales hit a record high, with devices priced at more than €800 accounting for 32 per cent of the market, driven by strong demand for Apple and Samsung models.

Samsung held onto top spot with 12.2 million units shipped, boosted by strong performance of its Galaxy S25 range which saw a 12 per cent increase in shipments from Q1 2024. The vendor also hit its highest-ever average selling price in the region, boosted by promotions including trade-in deals and bundles.

Apple came in second with 8 million iPhones shipped, marking a 10 per cent increase year-on-year. The company saw strong demand for its new iPhone 16e despite starting the quarter with leftover stock of older iPhone models discontinued due to Europe’s USB-C regulation.

Xiaomi nabbed third place with 5.3 million units, while Motorola and Google followed with 1.7 million and 900,000 units respectively –– the latter marking its first-ever appearance in Europe’s top five smartphone vendors.

Challenges
Bjorhovde noted that vendors relying on low-cost phones took the biggest hit, warning that rising costs and tougher regulations, such as new eco-design and battery rules, will “challenge operating margins further and potentially reduce the total addressable market, particularly in the fiercely competitive budget segments”. 

As competition intensifies, Bjorhovde urged vendors to prioritise efficiency and profitability, while rapidly adapting to shifting consumer behaviour in a market where it is “getting harder and harder to differentiate and capture end-user curiosity”.

Looking ahead, Canalys forecasted the European smartphone market to shrink by 3 per cent in 2025 before bouncing back with 1 per cent growth in 2026.