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Europe’s Smartphone Market Returns To Growth In Q1 2026

by THEFUTURE.TEAM

June 3, 2026

Europe’s smartphone market returned to growth in the first quarter of 2026 despite rising component costs and ongoing supply chain pressures. According to market research firm Omdia, smartphone shipments across Europe, excluding Russia, increased by 2% year-on-year to 33.0 million units.

Steady Growth Amid Market Pressures

Demand remained stable during the quarter, supported in part by channel inventory build-ups as vendors prepared for potential increases in component costs and supply constraints. Manufacturers are also facing rising input costs and concerns about component availability later in the year.

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Vendor Performance: The Front Line Of Competition

Samsung retained its position as Europe’s largest smartphone vendor, increasing shipments by 3% year-on-year to 12.6 million units. Omdia attributed part of the growth to strong sales of the Galaxy A16 4G and promotional activity across key markets. Apple recorded 9% shipment growth, reaching 8.8 million units, supported by demand for the iPhone 17 series and continued expansion across multiple price segments.

Differentiated Strategies Among Leading Brands

Xiaomi’s shipments declined by 15% to 4.5 million units, reflecting supply constraints during the quarter. At the same time, the company reported a 21% increase in average selling prices, driven by stronger performance in higher-end devices across France, Germany and Spain. Motorola increased shipments by 17% to 1.9 million units, while OPPO recorded 9% growth to 1.3 million units as it expanded its presence in France and Eastern Europe. HONOR posted the fastest growth among major vendors, with shipments increasing by more than 60% following its expansion into lower-priced segments.

Channel Dynamics And Supply Chain Risks

According to Omdia principal analyst Runar Bjorhovde, channel inventory growth contributed to first-quarter performance as retailers and distributors increased stock levels during an active device replacement cycle. However, manufacturers continue to monitor rising component costs, particularly in the memory segment, which could affect pricing and supply conditions later in the year.

Looking Ahead: Navigating A Cautious Outlook

Although first-quarter results exceeded expectations, Omdia expects smartphone shipments in Europe to decline by 12% over the remainder of 2026. The research firm also expects inventory levels to remain elevated as vendors seek to protect themselves against future cost increases and potential supply disruptions. Recent market trends indicate that several manufacturers are placing greater emphasis on higher-value devices, reflecting a broader shift toward premium segments across the European smartphone market.

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Euro Area Trade Returns To Deficit As Imports Surge

The euro area’s trade balance slipped back into deficit in May 2026 as a sharp rise in imports outpaced largely flat export growth, reversing the €15.0 billion surplus recorded a year earlier, according to Eurostat.

Imports Outpace Exports

Exports edged up just 0.1% year on year to €243.6 billion in May, while imports jumped 10.0% to €251.4 billion. The result was a monthly trade deficit of €7.8 billion, compared with a deficit of €1.2 billion in April and a €15.0 billion surplus in May 2025.

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Eurostat attributed the deterioration mainly to a wider energy trade deficit and smaller surpluses in key manufacturing sectors, including machinery, vehicles and chemicals.

The broader European Union followed the same trend, recording a €12.1 billion trade deficit in May, compared with a €12.7 billion surplus a year earlier.

External Trade Weakens

Extra-EU exports fell 1.1% to €215.7 billion, while imports from outside the bloc rose 10.8% to €227.8 billion.

For the first five months of 2026, the euro area’s trade surplus narrowed to €3.3 billion from €78.7 billion in the same period of 2025. During that period, exports declined 2.8%, while trade between euro area countries increased 3.3% to €1.16 trillion.

Across the EU, the January-to-May balance shifted to a €15.9 billion deficit from a €70.1 billion surplus a year earlier.

Downtrend Continues

Seasonally adjusted data also pointed to weaker trade performance. In May, the euro area’s trade balance stood at a €5.0 billion deficit, while the EU recorded a €9.0 billion deficit, both larger than in April.

Although trade within the single market continued to grow, rising imports from outside the bloc continued to weigh on the euro area’s external balance.