Europe experienced its weakest second quarter in three years for smartphone shipments, declining 10% amid rising costs, softer demand, and geopolitical uncertainty, with global declines accelerating.
Europe’s smartphone market weakened further in the second quarter of 2026, with shipments falling 10% year on year to 35 million units, according to Counterpoint Research. That was the region’s weakest second-quarter result in three years and reflected a combination of higher device prices, fewer promotions and softer consumer demand in a difficult macroeconomic climate.
Counterpoint said component cost increases fed through to final retail prices, while manufacturers reduced discounting to defend margins. The firm also pointed to an uncertain financial outlook across much of Europe, alongside inflationary pressure linked to the Iran War, which left many buyers reluctant to make discretionary purchases. In a separate forecast, Counterpoint said global smartphone shipments were set to decline by 10% in 2026, as saturation in mature markets, longer replacement cycles, geopolitical uncertainty and weaker spending weigh on demand.
The regional picture was uneven. According to Counterpoint, Western Europe held up better, helped by a strong quarter for Apple and marginal growth from Samsung. Eastern Europe, by contrast, saw a sharper fall as budget devices came under pressure and most Chinese brands struggled. That pattern mirrors broader industry data showing the budget segment has been hit hardest as manufacturers pass on higher component costs.
Counterpoint’s Jan Stryjak said the market remains “a very challenging time”, and added that inventory levels are falling across Europe, which may mean further declines in the coming quarters, especially for lower-end players. He said Apple remained a bright spot and was expected to continue outperforming the rest of the market. Separate global estimates from Counterpoint also showed smartphone shipments falling 11% in the second quarter, the weakest Q2 since 2013, as memory shortages pushed up costs and intensified price pressure across the sector.
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