IDC: W. European Mobile Market Reaches Saturation

According to IDC the W. European mobile phone market fails to grow in 2014, making for a 2nd consecutive year of shipment declines-- a clear sign of saturation as overall 2014 shipments drop by -5.2% to 174.1 million units.

IDC mobile phones

The feature phone segment is worst hit, with shipments dropping by 39% to 28.4m units and revenues worth $1.4 billion. IDC describes feature phones as nothing less than a niche segment, one representing just 16% of 2014 shipments and 2.2% of total market value.

Meanwhile smartphone shipments reach 145.8m units with 6.4% growth. The category makes 84% of overall 2014 mobile shipments, and is worth $62.4bn, a 1.7% increase over 2013.

IDC Smartphones

"Although the total market was impacted by higher penetration rates, the smartphone segment hit a record high in 2014 in terms of units shipped and market value," the analyst says. "Seven out of ten people in W. Europe now have a smartphone. The success of the new iPhones 6 and 6 Plus, the increasing popularity of phablets and the explosion of devices priced under $150, were the biggest contributors to this growth.”

IDC says phablets make 10% of 2014 W. European smartphone shipments, with shipments growing by 174% to 14.3m despite higher ASPs ($699, compared to the average smartphone ASP of $428). Samsung, Apple and LG account for 80% of phablet shipments.

When it comes to operating systems the market is clearly divided between Android, iOS and Windows Phone, and as a result OS alternatives risk W. European extinction. Android dominates, but faces challenges in the high-end by iOS and Windows Phone in the low-end. IDC also says iOS should grow in 2015 thanks to new iPhone momentum, while Windows Phone should continue to grow in the enterprise segment thanks to integration with Microsoft solutions.

Go IDC European Quarterly Mobile Phone Tracker