Warc, 27 May 2014
LONDON: The top two smartphone manufacturers, Apple and
Samsung, are increasingly being challenged in Europe as a result of market
fragmentation across the region, according to new research.
The latest smartphone sales data from Kantar Worldpanel
ComTech, covering the three months to April 2014, showed that major brands are
facing increased competition from smaller manufacturers vying for position
within this lucrative market.
Lesser-known players and revitalised brands are both now
gaining "real traction", according to Dominic Sunnebo, strategic
insight director at Kantar Worldpanel ComTech.
"Established brands like Motorola and Sony are showing
resurgence, and newcomers to the European market, such as Huawei and Wiko, are
challenging the established names," he said.
Huawei, the Chinese manufacturer, saw its smartphone sales
rise by 123% in the big five European markets – France, Germany, Italy, Spain
and the UK – in the past year. It now holds an average market share of 3%,
rising to 5% in Germany and Spain.
French brand Wiko also enjoyed triple-digit growth across
Europe, and now has an 8% share in its home country, with further expansion
planned across the continent, including into the UK.
Kantar noted that the British market has yet to experience
the high levels of fragmentation witnessed elsewhere in Europe, but the entry
of Wiko could potentially change that.
Sunnebo further observed that Europe and the US were
starting to follow some common trends from other parts of the world, where
there was a separation of tariffs and handsets.
"Consumers are starting to realise the true cost of
handsets, and as a result they are shopping around to find cheaper
alternatives," he said.
"This shift in behaviour plays directly into the hands
of lesser-known brands like Huawei and Wiko, who are able to offer competitive
technologies for a fraction of the price."
In China, the world's largest smartphone market, local
vendor Xiaomi outsold Samsung for the second time in April 2014.
Xiaomi RedMi, the company's budget handset, was the
top-selling smartphone in the country, with 41% of buyers acquiring their first
ever smartphone and another 23% switching from Samsung.
Data sourced from Kantar Worldpanel ComTech; additional
content by Warc staff
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