Samsung is challenging Apple in the smartphone market in Europe claiming again the top spot from the US phone maker.
But the South Korean firm could be ready to up the ante bit more. Reports have surfaced that Samsung is adopting Apple’s strategy focusing on premium sales and the ecosystem. But the company also admits that competing with Apple won’t be easy.
Research firm Counterpoint reported a bleak market report recently. It said:
Western Europe’s smartphone market faced a continued slump in Q1 2023, dropping 13% to 23.7 million units of shipments, as challenging economic conditions drove lower consumer demand and extended purchasing cycles.
Worse, it doesn’t see the scenario changing soon. However, the next year could have some optimism. Another firm Canalys predicts a rebound growth of 6% in 2024.
Samsung mimicking Apple in Europe!
The report observes that Samsung could mimic Apple’s playbook. In Europe, Samsung has transitioned towards the mid to high-end product segment “motivated by better revenues and higher profit margins, and stronger ecosystem integration,” said Runar Bjørhovde, Analyst at Canalys.
In Q1, 2023, Samsung’s average selling price grew by 11% which resulted in a 6% fall in the total value of its shipped devices. Growingly, the company has invested in advertising, MDFs (market development funds), and co-marketing with operators and retail chains which also seeks to challenge Apple in Europe.
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Samsung is paying operators and retail sellers to promote its phones over others. Samsung’s strategy of propping its products in the market ahead of its competitors.
However, Apple seems to be better placed in the head-to-head competition. As per Calanys Consumer Insights research, Apple continues to remain the most prominent vendor in Western Europe, backed by a loyal user base in Europe with high popularity.