SSNHZ Samsung Electronics Company Ltd (PK)

By Dominic Chopping

STOCKHOLM--The European smartphone market declined by 12% year-on-year in the first quarter of 2022, as continuing component shortages, Covid-19 lockdowns in China, deteriorating economic conditions and the onset of the Russia-Ukraine war all weighed, according to a report from Counterpoint Research.

The research firm said that 49 million smartphones were shipped in Europe in the quarter, the lowest first-quarter total since 2013.

The region's biggest vendor, Samsung Electronics Co., saw shipments fall 16% on the year while Apple Inc.'s fell 6%. Realme was only the top-five vendor to register annual shipment growth in the quarter, with a rise of 67%, it said.

"Existing issues such as Covid-19 and component shortages have been exacerbated by new economic and geopolitical challenges," said Jan Stryjak, Counterpoint Research Associate Director.

"Rising inflation levels across the region are impacting consumer spending, while Samsung and Apple, Russia's first and third ranked smartphone vendors, halted all shipments into Europe's largest market in early March 2022," he said.

Looking ahead, the overall situation is expected to get worse before it gets better, with many countries in Europe close to recession and the Russia-Ukraine war unlikely to be resolved any time soon, Counterpoint Research said.

Annual growth in smartphone shipments is therefore expected to continue to decline for the next few quarters, especially in the second quarter, as the cost of living across the region hits record highs and the full impact of Samsung and Apple's withdrawal from Russia is realized, it added.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

June 15, 2022 06:36 ET (10:36 GMT)

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