European smartphone shipments hit a three-year low — and budget models are the reason

The European smartphone market has recorded its worst quarterly performance in three years. According to a new report from Counterpoint Research, shipments in the second quarter of 2025 (April to June) totaled 35 million units — a 10% decline compared to the same period last year. Analysts attribute the downturn to a combination of factors: rising inflation, geopolitical tensions related to the Iran conflict, and increasing component costs.

Apple and Samsung remain the dominant players, each commanding a 34% share of total shipments. Xiaomi secured the third position with a 15% share, followed by Oppo (including its sub-brands OnePlus and Realme) at 4%, and Honor with a 3% slice of the market.

Regional performance diverged significantly. Western Europe fared relatively better, driven by strong growth from Apple and marginal gains from Samsung. Eastern Europe, however, experienced a sharper decline as the budget segment contracted. Looking ahead, Counterpoint analysts predict further shipment drops. Inventory levels are running low across the region, and the affordable segment is expected to bear the brunt of the ongoing slump, as consumers tighten spending amid economic uncertainty.