Realme phone sales in Europe grew 275% from 2020 to 2023. The Chinese company aims to increase its market share from the current 4% to more than 10% within 3-5 years.

Realme is the fastest brand to reach 100 million device sales globally in 2021 and 200 million units by 2023, despite a slowing market, according to Tech Insights and Counterpoint Research.

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Honor showcased the Magic V3 foldable phone at IFA in September in Berlin, Germany. 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 succeeds in Europe, it will elevate the brand and help increase sales worldwide.

Still, he noted that 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 low-cost devices, meaning Realme's growth here has been slower than in other markets, where it has doubled, tripled, and even quadrupled sales in just a few years.

“After coming to Europe, we found that this market is not as easy as we imagined,” Mr. Wong admitted.

Apple and Samsung still dominate in Europe, especially in the high-end segment, according to Counterpoint. The two brands accounted for 94% of sales of devices above $700 in the second quarter.

The last Chinese brand to come close to reaching 10% of the premium market share was Huawei, but it was knocked down by sanctions from the US and several other countries.

Realme started as an offshoot of Oppo, a brand of BKK Group. BKK also owns Vivo and OnePlus.

This year, Chinese smartphone makers are renewing efforts to boost European sales, as they spot 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 screens. 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 1 foldable smartphone brand in Western Europe and was in the top 5 overall sales in the previous quarter.

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

Meanwhile, Oppo said it will release its flagship Find X8 in Europe, marking its return to the high-end segment. Billy Zhang, President of International Marketing, Sales and Services, affirmed that the company is determined to invest in the European market for the long term.

Despite the challenges, he hopes consumers will gradually get used to the Oppo brand.

Xiaomi – the top-selling brand after Apple and Samsung – also increased its premium market share to 4.3% in the third quarter, up from 2.7% in the same period in 2023, according to research firm IDC.

Analysts warn that Chinese phones have struggled to raise their market share to more than 4% in recent years, while spending on expensive marketing campaigns, including sponsorship of major sporting events, has not had the desired effect.

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 like Japan, Australia and the US.

“If you can do it here, you can do it anywhere else,” says Honor President Ran.

(According to FT)