Apple and Samsung are comfortably seated in the European market, watching Chinese phone makers compete fiercely among themselves

12/01 2024 535

With the Indian market affected by well-known factors, the European market has become a battleground for Chinese phone makers. The European market is the second largest overseas market for Chinese phones after India. However, data from the third quarter of this year shows that Chinese phones are facing an unfavorable situation in the European market, competing fiercely under the heavy pressure from Apple and Samsung.

Data from analysis agencies shows that both Apple and Samsung achieved sales growth in the European market in the third quarter.

After facing a decline due to the fierce competition from Chinese phones, Samsung achieved a 9% growth in the European market in the third quarter of this year, with a market share as high as 32%, firmly establishing its leading position in the European market.

Apple ranks second in the European market with a market share of 24%. Driven by the iPhone 16, Apple's sales in the European market also increased by 10%, indicating that the iPhone 16 is not as weak as domestic media has portrayed. On the contrary, European consumers have shown considerable acceptance of the iPhone 16.

These two phone brands account for 56% of the market share in Europe, with the remaining share mainly shared by Chinese phone brands.

The third-ranked phone brand in the European market is the top Chinese phone brand, which holds a 19% share in the European market, solidifying its leading position among domestic phone makers.

However, in the third quarter, several Chinese phone brands launched a variety of phones in the European market, with price wars being one of their key strategies. These Chinese phone brands competed fiercely for market share from the top Chinese phone brand with more cost-effective phones.

The two Chinese phone brands that grew rapidly in Europe both start with the letter 'R'. One saw a 20% increase in sales in the European market, while the other saw a 30% increase.

The sales growth of these two 'R'-branded phone makers in the European market primarily came at the expense of the top Chinese phone brand's market share, resulting in a 17% sales decline in the Western European market for the latter.

The development of Chinese phones in the European market is related to the challenges they face in the domestic market. China's phone market is the largest in the world, but phone sales have declined significantly, from 470 million units in 2016 to 270 million units in 2023.

The decline in domestic phone sales has prompted Chinese phone brands to expand overseas. However, data from the European market shows that these domestic phone brands have struggled to threaten the market positions of Apple and Samsung in overseas markets. They can only compete for market share with other domestic phone brands.

Another threat to domestic phone brands is Google, whose Pixel brand has gradually gained traction after years of effort. The rapid sales growth of the Pixel brand in the European market, coupled with Samsung's growth in the Android camp, suggests that Google is stealing market share from Chinese phone brands, which is detrimental to Chinese phones. It can be said that the development of Chinese phones in overseas markets is facing uncertainties.

A few years ago, Chinese phones enjoyed smooth development in overseas markets, posing a significant threat to Samsung and Apple. In the European market, a Chinese phone brand even ranked second. However, due to measures taken by the United States against that phone brand, its sales have plummeted. Other domestic phone brands have struggled to reach the same height in the European market, with Samsung and Apple suppressing them, leading to fierce competition among themselves, which is quite regrettable.

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