Chinese phones challenge Samsung and Apple in Europe.

Chinese phone manufacturers like Realme, Oppo, and Honor are striving to gain a stronger foothold in Europe, challenging Samsung and Apple with high-end devices.

Between 2020 and 2023, Realme's phone sales in Europe increased by 275%. The Chinese company aims to raise its market share from the current 4% to over 10% within 3-5 years.

Realme was the fastest brand to reach 100 million devices sold globally in 2021 and is projected to reach 200 million devices in 2023, despite a slow-growing market, according to Tech Insights and Counterpoint Research.

Honor showcased the Magic V3 foldable phone at IFA in Berlin, Germany, in September. Photo: Honor

Francis Wong, Realme's product marketing director, said the company's strategy is to go from low to high. The company believes that if it achieves success in Europe, the brand will be elevated and help increase sales worldwide .

However, he noted that the marketing costs to sell products to European customers – who are loyal to Apple and Samsung – are 10 times higher than in India.

Consumers in the Old Continent are less familiar with Chinese brands and less interested in budget devices, meaning Realme's growth there is slower compared to other markets, where they have doubled, tripled, or even quadrupled their sales in just a few years.

Mr. Wong admitted, "After arriving in Europe, we found that this market wasn't as easy as we had imagined."

Apple and Samsung continue to dominate in Europe, particularly in the premium segment, according to Counterpoint. The two brands accounted for 94% of sales of devices priced above $700 in the second quarter.

The last Chinese brand to come close to reaching 10% of the high-end market share was Huawei, but it was ultimately defeated by sanctions from the US and several other countries.

Realme started as a subsidiary of Oppo, a brand owned by the BKK group. BKK also owns Vivo and OnePlus.

This year, Chinese smartphone manufacturers are renewing their efforts to boost European sales, as they see opportunities to gain market share through new technologies such as foldable screens, advanced cameras, and fast charging.

Tony Ran, President of Honor Europe, commented that users here are very open to foldable displays. He added that this is the company's most important market outside of China.

In the second quarter, Honor surpassed Samsung to become the number one foldable smartphone brand in Western Europe and was among the top 5 in overall sales in the previous quarter.

According to Ran, 60% of people who buy foldable phones on Honor's online store have previously used Samsung or Apple devices. The Magic V3 foldable model sells for around 2,000 EUR, higher than the price of a 1TB iPhone 16 Pro Max.

Meanwhile, Oppo announced it will release its flagship Find X8 in Europe, marking its return to the premium segment. Billy Zhang, President of International Marketing, Sales and Service, affirmed the company's commitment to investing in the European market in the long term.

Despite the challenges, he hopes consumers will gradually become familiar with the Oppo brand.

Xiaomi – a brand second only to Apple and Samsung in sales – also increased its premium market share to 4.3% in the third quarter, up from 2.7% in the same period of 2023, according to research firm IDC.

Analysts warn that Chinese phone manufacturers are still struggling to increase their market share to over 4% in recent years, while spending on expensive marketing campaigns, including sponsoring major sporting events, is not yielding the desired results.

From the perspective of smartphone manufacturers, they believe that doing well in developed markets like Europe will enhance their reputation in other high-end markets such as Japan, Australia, and the United States.

"If you succeed here, you will succeed anywhere else," said Honor's President Ran.

(According to FT)

Source: https://vietnamnet.vn/dien-thoai-trung-quoc-thach-thuc-samsung-apple-tai-chau-au-2343740.html