A report by market research firm Counterpoint Research shows that the smartphone market in Europe saw a significant decline of 24% from the same period last year in Q2 2020. The report also shows a 22% quarter-on-quarter (QoQ) decline in the same period. The slump is due to the COVID 19 pandemic which seems to have affected the demand for smartphones. The report also reveals that Eastern Europe which had shown somewhat of an immunity to the pandemic in the first quarter also experienced a decline of 24% YoY in the second quarter.
Commenting on the overall market, Peter Richardson, VP of Research said, “The impact of COVID-19 gathered speed in Europe during April as it was the first full month of lockdowns across almost the entire region, causing a decline of around 45% YoY and 30% MoM. As the lockdowns started to lift across Europe in May, the sales rebounded (+33% MoM). June was equally good, posting a further sequential increase of 34%. Though MoM comparisons look good, the overall scenario for the quarter still shows a 24% YoY decline.”
The lockdown imposed by several countries to flatten the curve of COVID 19 infections is responsible for the slowed growth. However, the lockdown did not completely stop the sales as e-commerce channels remained open and functioning even in countries with the most severe lockdowns such as Spain and Italy. The e-commerce efforts were supported by European governments’ generous furlough schemes. Since the easing of the lockdown, governments’ support to business are being reduced, increasing the threat of wide-spread redundancies across many businesses.
Russia’s smartphone market, which was slow to acknowledge the presence of COVID-19 in Q1 2020, became the worst affected European market in Q2 2020 declining 27% YoY for the quarter.
In terms of individual brands, Counterpoint reveals that Samsung continued its lead of the market, driven by its diversified portfolio and new product lines that cater to the requirement of all price bands. Apple, supported by the good performances of the iPhone SE 2020 and 11 series, saw the decline of its sales volume reduced to 14% YoY. Meanwhile, Huawei recorded a massive decline of 46% YoY amid US-China trade sanctions. The ack of Google Mobile Services on its new models may have contributed to this decline than privacy concerns. Xiaomi and Oppo grew 55% YoY and 41% YoY even during the pandemic. With their attractive specs at affordable prices.
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