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iPhone Shipments Fell 17% in Europe in Q2

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Aug. 12 2019, Published 12:29 p.m. ET

According to a Canalys report, Apple’s (AAPL) iPhone market share has taken a hit in Europe.

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iPhone shipments fell 17.0% in Europe

In the second quarter, Canalys estimated iPhone shipments of 6.4 million units, a fall of 17.0% year-over-year compared to shipments of 7.7 million units in the second quarter of 2018.

Europe’s smartphone shipments were flat at 45.1 million units in the second quarter. Due to the iPhone decline, Apple’s market share in Europe has fallen to 14.1% in the second quarter from 17% in the second quarter of 2018. China’s Huawei was one of the worst performers in Europe. The shipments fell 16% to 8.5 million units. Huawei smartphones were hit by the US ban when the former was accused of espionage. Huawei’s market share fell from 22.4% to 18.8%.

China’s Xiaomi gained significant traction in European markets. The shipments rose 48.0% to 4.3 million units. Xiaomi’s market share rose from 6.5% to 9.6%. Samsung (SSNLF) continues to lead the European market with a share of 40.6%—up from 33.9%. Samsung’s shipments rose 20.0% YoY to 18.3 million units.

Xiaomi has able to gain market share. The company’s smartphones are popular in price-sensitive Eastern European countries. The company has also benefited from the Huawei ban in the second quarter.

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Apple leads the premium smartphone market

Although the Canalys report considered smartphones across price points, Apple is a top player in the premium smartphone segment. Apple products are priced at a premium. Apple is considered to be a niche product in emerging economies. The company led the global premium smartphone market with a share of 47.0% at the end of the first quarter. Samsung is the second-largest player with a 25.0% share in the premium market.

Apple’s iPhone sales have fallen over the last two quarters. Samsung just released two new smartphones starting at $950. The company is taking Apple head-on in the premium segment. Will Apple continue to lose market share to Samsung in Europe in the second half of 2019? Investors will watch Apple’s annual September event. The company will unveil its latest line of products.

The iPhone accounts for most of Apple sales. The iPhone is a key revenue growth driver. While Apple will likely benefit from the Huawei ban, it will need its new devices to drive revenues in the holiday quarter and beyond.

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