Carrier Hardware Sales Gain Ground as Open Market Shrinks

European mobile operators are seeing their share of the smartphone market grow, though this growth is driven by the collapse of competing channels rather than an increase in volume. According to Counterpoint Research, as reported by The Register, smartphone sales through European operators fell by 4% in the second quarter of this year compared to the previous year. However, sales in the open market—which includes devices bought directly from manufacturers or independent retailers—dropped by a steeper 11%.

Operators now account for 36% of European smartphone sales, up from 35% a year prior. The Register reports that an AI-driven memory crisis has caused a shortage of NAND flash and DRAM components, leading to price hikes that have made budget devices commercially unviable. Because operators typically sell higher-end models and utilize contracts to spread costs over monthly payments, expensive devices have become more accessible to consumers.

Counterpoint Research notes that Apple has overtaken Samsung as the brand with the highest market share within the operator channel, while vivo and Motorola are the fastest-growing brands in that segment. Jan Stryjak, an associate director at Counterpoint, suggests operators will likely continue to gain share as the budget market remains impacted. However, Stryjak noted that independent retailers have increased promotional activity to counter price rises. Additionally, the second-hand market is predicted to see a 12% increase in trade this year as new hardware becomes less affordable.