People bought fewer smartphones around the world in the first quarter of 2025 — here's why

If anything captures the state of the smartphone industry right now, it’s this: everyone’s still buying, but they’re doing it more cautiously, and only when it feels worth it.

In Q2 2025, global smartphone shipments barely moved the needle. IDC reports a slight year-over-year increase of 1%, while Canalys data suggests a 1% drop. Whether up or down, the takeaway is the same: the market is stalling, caught between curiosity and caution.

Consumers are still showing up, but they’re holding back. It’s that everything around them—prices, jobs, currency swings, and tariff threats—is making them think twice before spending. That pressure is being felt most acutely by low-end Android devices, which are seeing demand dry up.

“Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest,” said Nabila Popal, IDC’s senior research director.

China, usually a reliable engine for global growth, wasn’t much help either. Government subsidies failed to move the needle, and while the 618 shopping festival delivered strong sell-through, it was more about clearing inventory than boosting shipments. Apple led during the event, but still saw a 1% drop in the country. However, it still managed to eke out a 1.5% growth globally, thanks to strong 15% gains in emerging markets.

Samsung, on the other hand, had a standout quarter. Riding on the success of its new Galaxy A36 and A56 models—both featuring AI-powered tools brought to the mid-range segment— Samsung grew shipments by nearly 8%, reaching 58 million units. This performance helped the company solidify its position at the top with a 19.7% market share.

Xiaomi held steady, posting a slim 0.6% growth to reach 42.5 million units and maintaining its grip on the number-three spot globally. Vivo followed with 27.1 million units shipped, up 4.8% year over year.

Transsion, which had been a consistent growth story in recent years, slipped slightly this quarter, with a 1.7% decline to 25.1 million units. And the rest of the market outside the top five, grouped under "Others," shipped 96.1 million units, down 3.1% from the previous year.

But, even with the soft numbers, the IDC report suggests the industry isn’t backing down; it’s recalibrating. Rather than chasing volume, vendors are betting on smarter phones, not just more of them. AI integration across price tiers is becoming a key differentiator.

That strategy helped push the market to its eighth consecutive quarter of growth, or near growth, depending on which analyst you ask. It’s the longest such streak since 2013, which gives some industry watchers hope that the recovery is real.

Whether the market has truly turned a corner will depend on what the next few quarters deliver. But for now, even in a landscape defined by hesitation, there’s movement. And in an economy that’s still shaky, a market that’s learning to adapt might be the smartest signal yet.