germany Archives - Counterpoint

European EV Sales Increased Over 13% YoY in Q1 2023 with Tesla Model Y as Bestseller

EV sales penetration dropped to 18.4% in Q1 2023 from 27.6% in Q4 2022
Tesla Model Y was the best-selling EV model across all major countries except Spain.
EV sales penetration is expected to exceed 25% again by the end of the year.

London, New Delhi, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – July 5, 2023

Europe’s passenger electric vehicle* (EV) sales increased by more than 13% YoY in Q1 2023, according to the latest research from Counterpoint’s Europe Passenger Electric Vehicle Model Sales Tracker. While overall passenger car sales in Europe are showing signs of improvement, they have not yet reached pre-COVID-19 levels. In terms of overall EV sales, Germany led the pack, closely followed by the UK, France, Italy, the Netherlands and Norway. Meanwhile, the share of EVs in total passenger vehicle sales was the highest in Norway and the Netherlands.

In Q1 2023, Battery EV (BEV) sales jumped 32% YoY while plug-in hybrid EV (PHEV) sales declined 13% YoY. Consequently, the EV share of total passenger vehicle sales declined during the quarter from that a year ago.

Meanwhile, there has been notable progress in the European market for Hybrid EVs (HEV) and mild-hybrid EVs (MHEVs). This indicates that Europe is making efforts to tap into the lower-end EV market while simultaneously developing battery ecosystems and fostering a circular economy. These initiatives are being undertaken before placing a stronger emphasis on pure EV sales.

Commenting on the market dynamics, Senior Analyst Soumen Mandal said, “In Q1 2023, most European EV sales were captured by the top five automotive groups – Volkswagen Group, Tesla, Stellantis, Mercedes-Benz and Hyundai-Kia. They accounted for nearly two-thirds of the market share. When it comes to pure electric vehicles (BEVs), Tesla holds the second position, slightly behind Volkswagen. In the plug-in hybrid electric vehicle (PHEV) market, Volkswagen takes the lead, followed by Mercedes-Benz and BMW.”

“Chinese EV manufacturers struggled to increase their market share in Europe during the quarter. However, MG, BYD, NIO, ORA and Aiways managed to improve their sales compared to the previous year. On the other hand, LYNK & CO, Hongqi and Xpeng faced challenges in the European market. Nevertheless, we expect Chinese automakers to be able to enhance their market share in the coming quarters by offering cost-effective vehicles with advanced features, as the EV market is expected to perform better.”

The top-selling EV model during Q1 2023 was the Tesla Model Y, followed by the Volvo XC40, Tesla Model 3, Volkswagen ID.3, and Audi Q4 e-tron. These top five models account for nearly a quarter of the total shipments. The Tesla Model Y dominates the market across major European countries, demonstrating Tesla’s strong brand presence in the region, except in Spain where it faces more competition.

Discussing the market outlook, Research Vice President Peter Richardson said, “The penetration of EVs in total passenger vehicle sales in Europe experienced a decline this quarter, dropping to 18.4% from 27.6% in Q4 2022. This is a significant shift compared to the previous trend of continuous QoQ growth. Except France, all major countries experienced this decline during Q1 2023.”

“Several factors contributed to this decline, including the unstable economic conditions and the removal of EV subsidies by Norway. Germany, the largest EV market in Europe, experienced a decline as the looming recession and cautious consumer spending hurt the EV market. These circumstances impacted the overall adoption of EVs in the region. However, since April, the European region has shown signs of recovery. As a result, we expect the share of EVs to rebound and surpass 25% again by the end of this year.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brands/companies.

*The countries in this study include Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, the UK and Ukraine.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not covered by this study.

The comprehensive and in-depth ‘Europe Passenger Electric Vehicle Sales Tracker, Q1 2018-Q1 2023’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Abhik Mukherjee

Soumen Mandal

Neil Shah

Peter Richardson

Follow Counterpoint Research

press@counterpointresearch.com

Related Posts

Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War

One in every seven cars sold during Q1 2023 was an EV.
Tesla Model Y becomes the best-selling passenger car model globally for the first time ever.
EV sales are expected to reach over 14.5 million units by the end of 2023.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – June 7, 2023

Global passenger electric vehicle* (EV) sales in Q1 2023 rose 32% YoY, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. One in every seven cars sold during Q1 2023 was an EV. Battery EVs (BEVs) accounted for 73% of all EV sales during the quarter, while plug-in hybrid EVs (PHEVs) made up the rest.

The US surpassed Germany to become the world’s second-largest EV market in Q1 2023 while China remained the leader. In China, EV sales experienced a remarkable 29% YoY growth, despite a 12% decline in overall sales of passenger vehicles in the country. In the US, EV sales soared over 79% YoY during the quarter. The top 10 automotive groups, encompassing 48 automotive brands, dominated the global EV market in Q1 2023, capturing three-fourths of the total global EV sales.

Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, “Global EV sales were largely driven by China with 56% of total EV sales in Q1 2023 coming from this market. The elimination of the NEV purchase subsidy in China resulted in lower-than-expected EV sales in January 2023. Tesla slashed prices for its models globally in January, following which other automotive brands announced similar cuts for their car models starting in February, which led to an improvement in EV sales. During February and March, almost 40 automakers, including BYD, NIO, Xpeng, Volkswagen, BMW, Mercedes–Benz, Nissan, Honda and Toyota, reduced their vehicle prices by a couple of hundred dollars to tens of thousands of dollars, which eventually stoked a competitive price war in China. Initially, it was thought that the price war would end soon and that auto OEMs would benefit from increased sales. However, as the price war continues to stretch, several automakers in China have reported reduced earnings and even losses.”

The top 10 EV models accounted for 37% of the total passenger EV sales in Q1 2023. Tesla’s Model Y remained the best-selling model globally followed by Tesla’s Model 3 and BYD’s Song. In Q1 2023, Tesla’s Model Y achieved the notable distinction of becoming the best-selling passenger car model worldwide, surpassing even conventional fuel vehicles.

Commenting on the market outlook, Senior Analyst Soumen Mandal said, “Although sales of the traditional internal combustion engine (ICE) vehicles remained stable in Q1 2023 compared with that in the year-ago period, the significant growth in EV sales indicates a rapid transition from traditional vehicles to EVs.”

“By the end of 2023, global EV sales are expected to surpass 14.5 million units, according to our forecast. With the implementation of the EV tax credit subsidy in the US, EV sales in the country are projected to significantly increase this year. To meet the eligibility criteria for the tax credit, automotive OEMs are moving to partner with battery suppliers and establish battery manufacturing plants across North America. Consequently, the US is poised to surpass the EU in the race to build EV batteries.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brand/company.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q1 2023’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Analyst Contacts

Abhik Mukherjee

Soumen Mandal

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Posts

Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead

Volkswagen Group led in connected car sales, closely followed by Toyota Group.
4G cars captured more than 95% of connected car sales in 2022.
Tesla broke into the top-10 connected car sales rankings for the first time.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023

Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’s Smart Automotive Service. The US remained the strongest market for connected cars followed by China and Europe. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.

Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”

Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”

Commenting on the market outlook, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost 95% share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By 2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”

* Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Connected Car Tracker, Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Abhilash Gupta

Soumen Mandal

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related posts

Berlin Factory Takes Tesla to Top Spot in Europe EV Sales as Chinese Brands Gain Ground

EVs contributed over 29% of Europe’s total passenger vehicle sales in Q4 2022.
Chinese EV brands sold nearly 58,000 units in Europe during 2022.
Europe’s EV sales are expected to exceed 4 million units in 2023.

London, New Delhi, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – March 6, 2023

Europe’s passenger electric vehicle* (EV) sales in Q4 2022 grew over 34% YoY to bring the 2022 total to over 2.7 million units, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery EVs (BEVs) continued to increase their share, growing by 36% YoY to account for almost 63% of all EV sales, while plug-in hybrid EVs (PHEVs) accounted for the rest. Germany was the largest EV market in Europe with almost 39% of total sales, followed by the United Kingdom and France. Germany also remained Europe’s fastest-growing EV market in Q4 2022 with 75% YoY growth, while Norway and Sweden’s overall passenger vehicle sales had the highest EV share in the continent. In terms of brands, Tesla managed to overtake Mercedes Benz to grab the top spot in Europe.

Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, “EV sales in Europe are increasing at a slower pace than expected. But since many European brands target to convert most of their models to electric by 2025, we expect EV sales to accelerate in the next two years. European automakers need to keep a close eye on Chinese competitors. Most Chinese brands, like BYD, Lynk, NIO and XPeng, made their European debut in 2021, selling just under 21,000 EVs cumulatively. In 2022, Chinese brands sold almost 58,000 EVs, capturing over 2% of the market. With the current trajectory, their share is expected to double to around 5% by the end of 2023.”

Market summary

Tesla became Europe’s top-selling EV brand in Q4, dethroning Mercedes Benz. Tesla’s Model Y also became the best-selling EV in Europe during Q4 and for the full year of 2022, followed by its Model 3. Production capacity at Tesla’s Berlin factory reached 3,000 units per week in November 2022. The factory played a crucial role in Tesla becoming the best-selling EV brand.

Volkswagen’s EV sales grew by almost 48% YoY in Q4, helping it stay the second best-selling EV brand in Europe. Volkswagen has been spearheading its ID models and the launch of an updated version of the ID.3 model will help the brand hold its position more firmly.

Mercedes-Benz sold over 76,000 EVs in Europe during Q4, a growth of 46% YoY. The top-selling models were the A-Class, EQA and GLE-Class. PHEVs accounted for almost 67% of Mercedes’ Q4 EV sales. Tesla and Volkswagen pushed Mercedes to third place in Q4 2022.

Discussing the market outlook, Senior Analyst Soumen Mandal said, “EVs contributed over 29% of Europe’s total passenger vehicle sales in Q4 2022. We expect that more than 4 million EVs will be sold across Europe in 2023. The rise of Chinese brands will likely pose a threat to local manufacturers. Lynk & Co, a subsidiary of Geely Holding, sold over 20,000 PHEVs during Q4 2022, with its Lynk 01 model entering the list of top 10 best-selling EV models in Europe. The implementation of strict laws to limit carbon emissions makes battery manufacturing costlier across Europe, thus making European-produced EVs more costly than those imported from China. Unless policies are brought for vehicle imports, the sales of Chinese EVs will continue to increase across Europe.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brands/companies.

*The countries in this study include Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom and Ukraine.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not covered by this study.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q4 2022’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Analyst Contacts

Abhik Mukherjee

Soumen Mandal

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Posts

Global Electric Vehicle Sales Crossed 10 Million in 2022; Q4 Sales up 53% YoY

EV sales during 2022 were over 10.2 million units, a 65% YoY growth.
7 out of the top 10 EV models were from Chinese brands in Q4 2022.
EV sales are expected to reach nearly 17 million units by the end of 2023.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – March 6, 2023

Global passenger electric vehicle* (EV) sales in Q4 2022 rose by 53% YoY to bring the 2022 total to over 10.2 million units, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. During Q4 2022, battery EVs (BEV) accounted for almost 72% of all EV sales, while plug-in hybrid EVs (PHEVs) accounted for the rest. The top three EV markets were China, Germany and the US. The top 10 EV automotive groups, which hold more than 39 passenger car brands, contributed to almost 72% of all EV sales in Q4 2022.

Commenting on market dynamics, Research Analyst Abhik Mukherjee said, “EV sales were at an all-time high during Q4 2022. The annual total for 2022 would have reached close to 11 million units had fresh COVID-19 infections not surfaced in China. COVID-19 infections in China during November and December affected automotive production and sales and disrupted the component supply chain. Despite these headwinds, Chinese brands managed to record strong growth. In fact, in 2022, many Chinese brands started to expand in markets like Europe, Southeast Asia and Latin America. Chinese brands are likely to dominate in Southeast Asia and Latin America as there are very few brands operating in these regions. But a fight for market presence is expected in Europe.”

The top 10 EV models accounted for one-third of the total passenger EV sales in Q4 2022. Tesla’s Model Y remained the best-selling model globally followed by BYD’s Song. The Model Y also became the top-selling model in Europe for two consecutive months in Q4 2022. 7 out of the top 10 best-selling EV models in Q4 2022 were from BYD and Wuling. These two brands predominantly operate in China, highlighting the positive evolution of the country’s EV market.Discussing the market outlook, Senior Analyst Soumen Mandal said, “EVs are becoming mainstream faster than expected. By the end of 2023, EV sales are expected to reach nearly 17 million units. This year, the US’ EV sales will see a boost as models become slightly more affordable due to the $7,500 tax credit. The end of the purchase subsidy in China might push EV manufacturers to increase their prices. BYD has already implemented one price hike in January. But these price hikes are unlikely to affect EV sales in one of the most matured EV markets. Lithium prices are also expected to come down during the second half of 2023, which will benefit EV sales.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brands/companies.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q4 2022’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Analyst Contacts

Abhik Mukherjee

Soumen Mandal

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Posts:

User Survey: Apple Will Continue to Dominate Germany TWS Market

More than 40% of the current TWS users plan for a next TWS purchase in a year or less.
71% of the TWS users again plan to opt for a TWS for their next hearable purchase.
JBL among the top three TWS brands preferred for future purchase, along with Apple and Samsung.

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – March 4, 2021

Apple will continue to dominate Germany’s TWS (True Wireless Stereo) market with 72% of the respondents in a Counterpoint Research Consumer Lens user survey preferring the brand for their next purchase, followed by Samsung and JBL. Besides, the survey, conducted in early 2021, reveals that more than 40% of the current TWS users in Germany plan for the next TWS purchase in a year or less. Based on the respondents’ price preference for their future purchase, the ASP (average selling price) will increase, with the €101-€200 price band having a stronger grip.

Commenting on the study’s overview, Research Analyst Arushi Chawla said, “With speedy digitization and expanding online content, hearable devices hold greater importance in today’s world. This has translated into new products and features in the hearables segment. TWS is one of the latest additions here, and its popularity is growing swiftly. According to Counterpoint’s TWS Tracker, Germany saw sales of 1.3 million TWS units in Q3 2020 as the country started to recover from COVID-19 restrictions. In the latest Consumer Lens study, we attempt to deep-drive into the reasons for the strengthening German TWS market by understanding the consumer persona, current choices and future preferences of TWS device users. We also try to ascertain the popularity of TWS earbud features like Active Voice Assistant and Active Noise Cancellation.”

Discussing the study findings, Chawla added, “It is interesting to note that with an overall ‘very satisfactory’ to ‘satisfactory’ experience, more than 70% of current TWS users plan for the same hearables type, i.e., TWS, for their next purchase. Besides, more than 40% of the respondents using TWS look forward to the purchase in a year or less. One of the major reasons behind this is to have a spare hearable device. This indicates growing dependence on hearables for various activities.”

Key Insights from Germany TWS Consumer Study

Source: Germany TWS Consumer Study, Counterpoint Research

Discussing brand preference, Senior Analyst Pavel Naiya said, “Apple will retain its throne in the coming times with an even stronger user base. According to the survey, key buying factors for Apple TWS users were sound quality, brand name and appearance. Furthermore, the pre-existence of a massive market share of iPhone users in Germany holds an undeniable influence on the TWS brand preference. Somewhat similar is the case with Samsung, the brand at the second spot.”

Naiya added, “As the market is maturing, and the consumer is looking to have more than one TWS device, there is scope for new brands to capture market share. With TWS reaching the affordable segment, value-for-money aspects like price and battery life are now more important, translating into opportunities for more brands in different price segments.”

The study was successful in understanding the exponentially flourishing TWS market of Germany. It throws light on how factors like COVID-19, changing user preferences and stronger approach by OEMs have contributed towards the swift expansion of the TWS market. For the full report, click here.

Methodology:

The study was conducted in Germany using an online survey panel of a heterogeneous group of TWS users. Localization of the questionnaire was done for seamless interaction with the target group, as the majority of Germany’s population is composed of non-native English speakers. A total sample of 600 respondents was collected using the quota sampling methodology for better representation of the universe as per the current TWS brand share in the market. We expect the results to have a statistical precision of +/- 4%.

Background:

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, or for press enquiries.

More than a third of Germans to spend less on next smartphone: Survey

34% of respondents will wait longer than usual for their next smartphone purchase

42% of prospective iPhone buyers have postponed their next purchase

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – August 05, 2020

According to the latest Consumer Lens survey conducted by Counterpoint Research, people in Germany are planning to trim the budget for their next smartphone purchase. Lockdowns across the nation due to the prolonged presence of COVID-19 forced people to stay at home. While many jobs in Germany were preserved through furlough schemes, the pandemic has affected the economy and consumer confidence. As a result, 34% of survey respondents plan to delay their next smartphone purchase. More than half of these further plan to reduce the amount they intend to spend on a future smartphone purchase. More than a fifth of respondents intend to cut their budget by more than 10%. However, the majority (~70%) are planning to buy a phone costing more than €270. The extent of reduction in budget varies with age, occupation, and future brand preference:

Nearly 40% of male respondents plan to cut their budget for the next smartphone; higher than for females.
37% of salaried respondents intend to trim budgets for future smartphone purchases.
While around a quarter of respondents under the age of 25 plan to cut their budget by no more than 10%, those aged above 25 are more frugal, expecting to reduce their budget by more than 10%.
Prospective iPhone buyers are most affected among the top smartphone brands, with more than 40% looking to postpone their next purchase as well as cut their budget.

Commenting on this trend, Counterpoint Research Associate, Arushi Chawla said: “34% of the respondents are looking to postpone their planned purchase of a smartphone. Further, the impact of coronavirus has been deep enough to create uncertainty about future income. Due to this, the delay in the next purchase varies between different income groups. 43% of the non-working and 35% of salaried respondents will likely postpone their next smartphone purchase with males more likely to postpone than female respondents. We were surprised that prospective iPhone buyers are intending to postpone purchasing and/or cut the budget more than prospective buyers for other top brands. This is not the behavior we have seen in other European markets”

Brand-Wise Cut in Smartphone Budget by More Than 10% Due to COVID-19

Source: Counterpoint Consumer Lens

The study also sheds light on the portion of respondents who want to boycott Chinese-origin smartphones. Respondents under the age of 35 are more prompted to explore smartphones manufactured outside China. Also, many (36%) of the salaried respondents will be strictly looking for a smartphone other than from China.

Commenting on the issue of smartphone manufacturing location, Counterpoint Research Senior Analyst Pavel Naiya said: “Many consumers globally look at China as a starting point of the pandemic. However, most respondents from Germany are not bothered about the manufacturing origin of their smartphones. Many seem to believe that most smartphones and their components are, in any case, coming from China. Other than a few international brands, most of the leading smartphone brands can trace their origin to China. However, the coronavirus pandemic has promoted the diversification of manufacturing and supply chain mechanisms for many leading smartphone brands to reduce the dependency on one country.”

Naiya added, “Around a quarter of respondents are unaware of the origin of their smartphone and look forward to increase awareness on the matter. This brings an opportunity for many global and regional players to increase awareness among these consumers. With respondents postponing and/or cutting their budget, the dynamics might change for the German smartphone industry in the short run. However, to make a long-term impact on consumers’ perception will be an uphill task.”

If you are interested in a detailed analysis of app spending and other smartphone consumer behavior, the full report is available for subscribers on our research portal.

Methodology:

The Consumer Lens survey was conducted among smartphone users in seven countries during May and June 2020. The consumer opinions are drawn from a heterogeneous group in terms of age, monthly income, gender, and occupation. Data points were selected which abided with all the logical checks throughout the analysis section and gave a better representation of the ongoing smartphone trends and future purchase intentions.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest
in-depth research, insights, or press inquiries.

COVID-19 Weighs on European Smartphone Market in Q1 2020

The viral outbreak followed by lockdowns caused the Europe smartphone market to contract by 7% YoY and 23% QoQ
Apple remained resilient while Huawei declined sharply for the quarter – though this was more than COVID-related

New Delhi, Mumbai, Hong Kong, Taipei, Seoul, San Diego, London, Buenos Aires – June 3rd, 2020

Smartphone sales declined 7% year-on-year (YoY) and 23% quarter-on-quarter (QoQ) in Europe during Q1 2020 amid COVID-19 outbreak, according to Counterpoint’s Market Pulse service. The impact of the pandemic was relatively stronger for Western Europe, down 9% YoY, than for Eastern Europe, down 5% YoY.

Commenting on the overall market, Peter Richardson, VP of Research said, “Q1 is seasonally weak, but the coronavirus outbreak amplified this. The smartphone market decline was primarily due to COVID-19 outbreak across the region in the second half of the quarter. The biggest five markets in Europe entered lockdowns of varying severity at different points in March. Consequently, most of the offline stores were closed, though online remained open throughout. Also, the economic impact of the pandemic has led to lengthening replacement cycles as consumers withhold making discretionary purchases.”

Europe Smartphone Sales Market Share (%), Q1 2019 vs Q1 2020

Amid the COVID-19 outbreak, Italy was the worst affected of all European countries, driving the smartphone market to a 21% YoY decline. In other markets, some operators such as Vodafone, and retailers such as Dixons Carphone were able to adjust to the sharply higher online demand and somewhat offset the decline. Others however, like Mediamarkt/Saturn in Germany, had underinvested in digital channels and lost sales due to store closures.

Coronavirus did not officially make its presence felt in Russia until late March/early April and hence the market remained relatively resilient in Q1 2020, declining just 1%.

Counterpoint Europe Smartphone Market Q1 2020

Commenting on the top OEMs in the European market, Abhilash Kumar, Research Analyst said, “Samsung continues to lead the chart for Q1 2020. This is driven by Samsung’s diversified portfolio across all price bands. Also, marketing campaigns around the Galaxy S20 launch boosted its overall sales. Unlike Chinese OEMs, Samsung had no supply issues and was not impacted by China lockdown worries. Apple remained flat for the quarter and showed its resilience during the COVID-19 crisis. The iPhone 11 series continues to perform well, despite a lack of supply in some markets and some channels. However, the expensive models slowed considerably in March. Huawei declined a sharp 43% YoY for the quarter as the US trade sanctions continue to bite. Xiaomi has been the biggest beneficiary from Huawei’s decline as it grew 145% YoY capturing 11% share in the quarter.”

Key market summary:

Huawei’s co-brand Honor led the Russian smartphone market in Q1 2020.
Chinese OEMs like Xiaomi and OPPO benefited from Huawei’s continuing struggles and hence grew more than 150% YoY for the quarter driven by strong performances in Russia, UK, France.
5G smartphone sales accounted for 4% of the overall market sales in Europe in Q1 2020.
Apple iPhone 11 was the best-selling model in Europe in Q1 2020.

Analyst Contacts:

Peter Richardson

Abhilash Kumar

Follow Counterpoint Research
press@counterpointresearch.com

Top

Insights Tag: germany

European EV Sales Increased Over 13% YoY in Q1 2023 with Tesla Model Y as Bestseller

Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War

Berlin Factory Takes Tesla to Top Spot in Europe EV Sales as Chinese Brands Gain Ground

Market summary

Global Electric Vehicle Sales Crossed 10 Million in 2022; Q4 Sales up 53% YoY

User Survey: Apple Will Continue to Dominate Germany TWS Market

Related Posts

More than a third of Germans to spend less on next smartphone: Survey

Related Posts

COVID-19 Weighs on European Smartphone Market in Q1 2020

Coverage

Insights

Social media

Contact us

Top

Market summary

Related Posts

Related Posts

Coverage

Insights

Social media

Contact us

Term of Use and Privacy Policy