The Western European mobile phone market shrank in the first quarter of 2013 due to a lower than expected slowdown in the smartphone shipments, according to IDC. Total shipments dropped 4.2% year on year to 43.6 million units in the first quarter.

　　The feature phones segment continued to lose ground as consumers adopt smartphones. Shipments fell 31% year on year to 12 million units. The smartphone segment also lost some steam in the first quarter. Shipments increased 12% year on year to 31.6 million units in the quarter, which was the lowest growth rate since IDC started tracking the mobile phone market in 2004.

　　Most Western European countries experienced a slowdown in smartphone sales as economies deteriorated, with a consequent decline in disposable income for consumers. Mobile operators are also cutting handset subsidies to reduce their costs as revenues decline. This is particularly impacting the Southern European economies, where consumers refrain from replacing their mobile phones for longer periods. In Northern Europe, smartphone penetration is reaching a tipping point, which has started to impact the smartphone growth, as most users already have a smartphone and will not replace it until the contract ends or the device breaks.

　　In Western Europe, phone makers are facing the most challenging time ever; the economic environment is impacting demand, while users are buying cheaper handsets, which impacts manufacturers' margins.

　　In terms of operating system, Android continues to dominate the smartphone landscape. In the quarter, Google's OS shipped 21.9 million units and market share increased to 69% in the first quarter of 2013 from 55% a year earlier. Apple's iOS continues to lose ground as market share declined to 20% in the first quarter of 2013 from 25% a year ago. Windows Phone improved its position to become the third biggest OS in the region, but it still represents a tiny percentage of the smartphones shipped. Its market share rose to 6% in the first quarter of 2013 from 4% a year earlier.