Global Smartphone Market Grows 1% Despite Challenges, AI Drives Innovation

In the second quarter of 2025, the global smartphone market demonstrated resilience, achieving a 1% year-over-year growth despite geopolitical tensions and weak market demand. The International Data Corporation (IDC) reported that 295.2 million units were shipped worldwide during this period, marking the eighth consecutive quarter of growth since 2013. This achievement is particularly notable given the ongoing political challenges, war impacts, and complex tariff issues that have affected the market.

The growth was driven by innovative designs and the deep integration of AI in new smartphone models released during the quarter. However, the market faced significant headwinds, particularly in the low-end segment, which is highly sensitive to price fluctuations. Economic uncertainty has compressed demand in this sector, leading to a slowdown in the growth of low-end Android devices. This, in turn, has impacted the overall market performance.

In China, the market underperformed expectations, contributing to the global slowdown. The government's subsidies, known as "国补," failed to effectively stimulate demand as anticipated. While the "618" e-commerce promotion period saw strong sales, manufacturers and channel partners primarily used this opportunity to clear inventory rather than increase shipments. Apple, despite leading the brand sales during the promotion, saw a 1% decline in shipments in China. However, its strong performance in emerging markets, where it achieved double-digit growth, offset this decline, resulting in a 1.5% global shipment increase for the quarter.

Samsung maintained its market leadership, outperforming the overall market with robust growth. This was largely due to the success of its new Galaxy A36 and A56 models, which introduced AI features to mid-range devices. These innovations effectively stimulated retail sales as more consumers showed interest in AI capabilities. The integration of AI in smartphones has become a key driver of market growth, with consumers increasingly valuing the advanced features that these technologies offer.

Looking ahead, the global smartphone market is expected to continue its growth trajectory, driven by ongoing innovation and the increasing demand for AI-enabled devices. However, challenges remain, particularly in regions where economic uncertainty and geopolitical tensions persist. Manufacturers will need to navigate these complexities while continuing to innovate and meet the evolving needs of consumers.