Europe’s smartphone market managed modest growth in the first quarter of 2026 despite facing significant supply chain pressures and price increases. The market grew 2% to 33.0 million units, driven by healthy consumer demand and retailers stocking up on inventory ahead of expected shortages.
The growth comes at a cost to consumers. According to Omdia, the average selling price of smartphones in Europe hit a record high of €580 in Q1 2026. This represents a significant jump from previous quarters, largely due to fewer budget devices under €200 being available.
The price surge reflects broader industry trends where memory shortages and supply chain disruptions are forcing manufacturers to focus on higher-margin devices. Budget phones now make up just 25% of shipments, an all-time low that’s pushing consumers toward more expensive alternatives.
Samsung maintained its position as Europe’s largest smartphone vendor, growing 3% to 12.6 million units. The company’s success came from effective discounting of the Galaxy A16 4G, which helped offset delays in launching the Galaxy S26, A57, and A37 models.
Apple posted stronger growth at 9%, reaching 8.8 million iPhones sold. The iPhone 17 series drove much of this demand, while the iPhone 15 and iPhone 16e expanded Apple’s mid-range coverage. Notably, Apple achieved this growth despite offering fewer and smaller discounts compared to previous years.
Among other major players:
- Xiaomi dropped 15% to 4.5 million units due to supply difficulties, but its average selling price jumped 21% thanks to strong sales of premium Xiaomi 17 and 15T series phones
- Motorola grew 17% to 1.9 million units, expanding rapidly in Spain and Portugal
- OPPO increased 9% to 1.3 million units, largely from its return to the French market
- HONOR was the fastest-growing major vendor with shipments up over 60%, helped by expanding into lower price tiers
The market dynamics reveal a shift from volume to value as both manufacturers and retailers focus on profitability over pure sales numbers. Many vendors that traditionally targeted budget-conscious buyers are now concentrating on mid-to-high-end segments where customers are less sensitive to price increases.
“The focus from both vendors and channel partners has shifted from volume to value to deliver results and operational sustainability,” said Runar Bjorhovde, Principal Analyst at Omdia. Retailers are also stocking up on inventory as a precautionary measure against expected supply shortages and further price increases.
The outlook for the rest of 2026 is less optimistic. Omdia forecasts European smartphone shipments will decline 12% for the full year, with most of the drop coming in the second half. The memory bottleneck affecting the industry is expected to worsen, potentially leading to steeper price increases and availability issues.
This situation creates a challenging balance for both manufacturers and retailers. While current inventory levels remain above normal as companies prepare for supply disruptions, a market correction appears inevitable once memory pricing stabilizes and the focus shifts back to reducing stock levels.