Counterpoint: half of mid-rangers sold in Europe support 5G, but Huawei’s departure increased prices

Xiaomi
Tamsin Rodriguez15 July 2021Last Update : 12 months ago
Counterpoint: half of mid-rangers sold in Europe support 5G, but Huawei’s departure increased prices

In the first quarter of last year, there were no mid-range 5G phones available in the European market. Thereafter, they accounted for 20% of the segment in Q3. In the first quarter of this year, 5G mid-rangers account for half of units sold in Europe in the $ 250- $ 500 range, according to Counterpoint research.

Support for next-generation networks is only part of the story – the middle class ($ 250 – $ 500) and the “affordable premium” layer ($ 500 – $ 700) are what drove the growth of smartphone sales on the old continent last year. And this came at the expense of Huawei.

Huawei is now almost exempt from the Western market. It was very popular in the sub- $ 250 segment, but the companies that ate its market share chose instead to focus on the higher price levels. Analysts argue that this is why the $ 250- $ 500 and $ 500- $ 700 segments grew even during an economic downturn caused by the pandemic. There is also now a shortage of attractive devices under $ 250.

Relatively new brands such as Xiaomi, Oppo and OnePlus showed a marked quadrupling in sales compared to the 1st quarter last year. Over a third of the phones sold in the intermediate and affordable premium levels now come from these three companies.

It puts pressure on Apple and Samsung in these segments, but according to Counterpoint the two market leaders are not confident even in the flagship segment, as Xiaomi, Oppo, OnePlus, Realme and vivo all get traction. They are working on foldable flagships, which increases the pressure on Apple and Samsung even more, analysts predict.

Source

Short Link