The storage crisis is affecting Europe's smartphone market unevenly: Cheap devices are disappearing, while expensive ones are holding their own. This benefits network operators, who already sell more high-priced models – and in this segment, Apple overtook Samsung in the second quarter.
The European smartphone market continues to shrink, but not equally across all distribution channels. This is shown in a new report from Counterpoint Research based on the market research company's Europe Channel Share Tracker. It analyzes which channels smartphones were sold to customers through in the second quarter of 2026 – network operators or independent retailers.
The shift is due to the same cause that has been shaping the market for months: Rising memory prices are making especially inexpensive devices more expensive, while Apple emerges stronger from the memory crisis.
Key Facts at a Glance
- Smartphone sales in Europe fell by 8 percent in the second quarter of 2026 compared to the previous year.
- Sales through network operators declined by only 4 percent, while sales on the open market fell by 11 percent.
- Apple has overtaken Samsung as the market leader in the network operator channel.
- Motorola and vivo grew fastest via this channel; last year it was Google and HONOR.
- Counterpoint expects network operators to gain further market share in the coming quarters.
Sales by distribution channel
Counterpoint differentiates between sales through network operators and sales through the open market. Both channels have shrunk, but to different degrees.
| Distribution channel | Change in Q2 2026 compared to the previous year |
|---|---|
| Network operator | -4 percent |
| Free trade | -11 percent |
| In total | -8 percent |
Because the network operator channel is shrinking more slowly than the rest, its share of the overall market is growing. Apple now leads this channel, ahead of Samsung.
Why the contract favors expensive devices
Counterpoint analyst Jan Stryjak attributes the shift to the channel's structure. More smartphones are purchased with contracts through network operators, meaning that higher-priced models from manufacturers like Apple, Samsung, and Google tend to end up there. Therefore, the slump in the lower price segment affects the network operator channel less than the open market.
According to Counterpoint, Apple is considered the most important driver of this development. Motorola and vivo, on the other hand, owe their growth primarily to their positioning with major European network operators.
Deliveries show the same pattern
Back in August, Counterpoint had already released figures on shipments in Europe, meaning the number of devices that manufacturers delivered to retailers. According to this second-quarter report, shipments fell by 10 percent to 35 million devices, the lowest figure for a second quarter since 2023.
Western Europe fared better, driven by a strong quarter from Apple and slight growth from Samsung. The market contracted much more sharply in Eastern Europe, as low-cost segments came under pressure and most Chinese manufacturers struggled. Globally, Apple achieved a 20 percent market share in the same quarter, also in a shrinking market.
Deliveries and sales are different metrics: one tracks what goes to retailers, the other what reaches the customer. However, the overall trend is the same in both reports.
Where dealers resist
I consider this report further evidence that the storage crisis is sorting the market along price lines rather than by brand. Apple benefits because the iPhone is already in the premium segment and is frequently sold with a contract – its leading position in the carrier channel is therefore almost inevitable.
The counter-movement, which Counterpoint also describes, is interesting: Independent retailers have recently expanded their promotions more significantly than the network operators. This could cushion some of the price increases and give new impetus to the free market. For buyers without a contract, this is the more interesting development.
Did you buy your iPhone with a contract from your network provider or unlocked from a retailer – and has the rising prices changed anything for you? Tell us your calculations in the comments.
