Top

2Q 2016: Western Europe 4G LTE Smartphone Shipments Grew 76% Annually

While overall smartphone demand remained flat compared to last year, 4G LTE smartphone demand across UK, Germany and France jumped significantly.

London, Hong Kong, Seoul, New Delhi, Beijing, San Diego, Buenos Aires –

Sept 7th 2016

According to the latest research from Counterpoint’s Market Monitor service, smartphone shipments in the second quarter of 2016 in Western Europe declined 1% YoY and 8% sequentially. However the largest five countries grew 4% YoY but declined 6% sequentially.

Peter Richardson, Research Director at Counterpoint, commenting on Q2 2016 market and vendor performance said, “The overall smartphone demand remained soft during the quarter with upticks in demand in Italy (+8% YoY), France (+9% YoY) and UK (+4% YoY) offset by slowdowns in Spain, Germany and other smaller countries across Western Europe. However, 4G LTE smartphone demand grew a substantial 76% YoY, as most brands transitioned to an all LTE portfolio and operators continued to push LTE smartphone bundles across the region. The UK was the biggest market for LTE smartphone shipments during the quarter, followed by France and Germany. The UK also continues to drive the highest LTE subscription number in the region, reaching 40 million subscriptions at the end of Q2, led by the operator EE with a 41% share in the UK. The wave of LTE smartphone subscriber growth and the Q4 holiday season will drive the overall demand higher across Western Europe in the second half of this year”.

Tarun Pathak, Senior Analyst at Counterpoint Research, commented further, “Western Europe continues to be a market of strategic importance for many brands, not only from a volume perspective but also value perspective as it is one of the higher ASP markets in the world. As the smartphone market becomes increasingly saturated and growth is more and more driven by replacement demand, the mid-range to premium segment is going to be even more competitive in coming quarters. The brands with strong marketing campaigns, better product quality, and strong channel and operator partnerships will cement their position in the second half. Huawei and Apple should register positive growth in the second half of 2016, likely at the expense of Samsung and other Android brands such as LG, Sony, HTC and others. Aggressive Asian brands such as Oppo, Vivo, LeEco and Xiaomi remain elusive in Europe, the challenge is coming more from home-grown brands such as Wiko and BQ. However their share remains limited across the region as a whole.”

Market Summary:

  • Almost nine out of every ten mobile phones shipped in Western Europe were smartphones
  • Chinese brands contributed to almost a fifth of the overall smartphone shipments.
  • One in five smartphones are sold through online channels.
  • Almost nine out of every ten smartphones shipped in Western Europe were LTE capable.
  • Top five markets contribute to almost 78% of the total smartphone market.

Exhibit 1: Western Europe Smartphone Shipments Contribution by Top 5 Countries

Western Europe Country Shares - 201609

Source: Counterpoint Research Market Monitor Q2 2016

Vendor Summary:

  • Samsung led the smartphone market during the quarter contributing a third of the total smartphone shipments in Western Europe driven by strong sales of its ‘A’ and ‘J’ series and flagship ‘S’ series.
  • Samsung S7 series was among the Top Five bestselling models in each of the Top 5 countries.
  • Apple maintained the second place with 21% market share in the region as shipments grew 5% YoY but were down 27% QoQ.
  • Huawei was the third largest brand in the region with a market share of 11% with strong performance in markets such as Italy, Spain, Netherlands and the Nordics.
  • Huawei shipments grew 30% YoY in the region driven mostly by strong demand of mid to high end smartphones
  • Western Europe was one of the strongest markets for Huawei as it expands its distribution backed by a strong marketing campaign featuring Hollywood stars as brand ambassadors
  • LG was ranked fourth in the region with a market share of 5% in the quarter driven by its K series. However, the recent flagship G5 failed to provide a much needed push in the premium segment.
  • Wiko continues to be among Top 5 smartphone brands with a market share of 3% driven by a strong performance in the big markets like France, Italy, Spain and UK.
  • Wiko was the third largest brand in France during the quarter as it remains popular in entry to mid smartphone segment.

Exhibit 2: Western Europe Smartphone Shipments 2Q 2016

Western Europe_OEM share_2Q2016

Source: Counterpoint Research Market Monitor Q2 2016

The comprehensive and in-depth Q2 2016 Market Monitor is available for subscribing clients (here). Please feel free to contact us at analyst@counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.

Analyst Contacts:

Peter Richardson

+44 20 3239 6411
peter@counterpointresearch.com

Tarun Pathak
+91 9971213665
tarun@counterpointresearch.com

Follow Counterpoint Research
analyst@counterpointresearch.com

Peter has 27 years experience in the mobile industry with extensive experience in market analysis and corporate development. Most recently Peter was Global Head of Market and Competitive Intelligence at Nokia. Here he headed a team responsible for analyzing and quantifying the industry. Prior to Nokia, Peter was an equity analyst at SoundView Technology Group. And before that he was VP and Chief Analyst of mobile and wireless research at Gartner. Peter’s early years in the industry were spent with NEC and Panasonic.

Apple Snack Pack

PREMIUM

Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.