German Smartphone Market Surpasses 40 Billion Euro Milestone

The smartphone industry in Germany is poised to exceed 40 billion euros in revenue this year, marking a significant milestone for the sector. This prediction comes from Bitkom, the IT and telecommunications industry association, which released its forecasts ahead of the Mobile World Congress in Barcelona.

According to the latest estimates, the smartphone ecosystem is expected to grow by 2.1 percent, reaching 40.1 billion euros. A substantial portion of this revenue, approximately 23.5 billion euros (an increase of 1.9 percent), is anticipated to come from data and voice services, making up more than half of the total market volume. Smartphone sales themselves are projected to generate roughly 12.1 billion euros (up by 2.5 percent), while the app market is expected to reach 2.2 billion euros (a growth of 2.3 percent). Additionally, the investment in mobile communication infrastructure is also set to hit 2.2 billion euros, reflecting a similar growth rate.

In a survey conducted by the association, it was revealed that 82 percent of individuals over 16 years old in Germany, equating to about 56 million people, currently own a smartphone. Of these users, 72 percent are already utilizing at least one artificial intelligence (AI) feature available on their devices. AI-driven tools, such as voice assistants, are employed by more than half of the respondents, while chatbots are utilized by nearly half. The overall acceptance of AI among smartphone users is notably high; for instance, 56 percent express willingness to use a smartphone that relies solely on voice commands, without any apps.

Despite the increasing interest in AI features, respondents indicated that durability and longevity are the most critical factors when purchasing a new smartphone. A staggering 98 percent prioritize robust screen materials, while 96 percent seek devices with extended battery life. Furthermore, 93 percent consider long-term software update support to be essential.

Recent trends indicate that consumers are keeping their smartphones for longer periods. The daily usage time has reached an average of 155 minutes across various age groups. Notably, only 35 percent of users now own devices that are less than a year old, a decline from 43 percent in 2024 and 55 percent in 2023. Almost half (47 percent) of users have smartphones that have been in use for over two years, a substantial increase from 27 percent in 2024 and 23 percent in 2023.

This trend towards delayed device replacement correlates with the growing demand for more durable and high-quality smartphones. Despite the rise in sales revenue, the total number of smartphone units sold is expected to stabilize around 20 million, leading to a projected average price increase of 14 euros to approximately 605 euros. In comparison, the average price was about 100 euros lower in 2021. Market analysis from IDC and Counterpoint indicates that the global market share of Chinese smartphone manufacturers continues to expand.