Global Smartphone Sales Rise 1.5% YoY Despite Q2 Drop, Samsung, Apple Lead with AI-Driven Growth

Global smartphone sales reached 295.2 million units in the second quarter of 2025, marking a 1.5% year-over-year (YoY) increase despite a 3.18% decline from the first quarter of the same year, according to preliminary data. This growth, though modest, reflects the sector’s resilience amid ongoing macroeconomic headwinds, including currency instability, inflation, and shifting consumer priorities. The report highlights a complex interplay of factors influencing demand, with analysts noting that economic uncertainty has disproportionately affected lower-end market segments.

International Data Corporation (IDC) attributed the quarterly decline to weak performance in key markets such as China, where traditionally strong demand has softened. Senior research director Nabila Popal emphasized that macroeconomic pressures have compressed spending on budget smartphones, particularly impacting low-end Android devices. “Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest,” Popal observed, noting that this trend has weighed on overall growth.

Samsung maintained its position as the market leader, shipping 58 million units in Q2 2025, equivalent to 19.7% of total global shipments. The South Korean giant’s success was driven by strong sales of its Galaxy A36 and A56 series, which introduced AI-powered features to mid-range devices. These innovations, coupled with aggressive retail strategies, helped offset broader market challenges. Apple followed closely with 46.4 million units shipped, securing a 15.7% market share. The report noted that while Apple saw a slight dip in sales within China, its expansion in emerging markets fueled a 1.5% global growth rate.

Chinese brands Xiaomi, vivo, and Transsion occupied the third, fourth, and fifth spots, with shipments of 42.5 million, 27.1 million, and 25.1 million units, respectively. Transsion’s inclusion in the top five marked a shift from previous quarters, as OPPO’s market position weakened amid tariff-related disruptions. Collectively, the top five manufacturers accounted for 67.4% of global shipments, underscoring the concentration of market power among a few key players. Meanwhile, the “others” category retained a 32.6% share, reflecting the fragmented nature of the industry’s long tail.

The quarterly comparison revealed a sharper 1.5% YoY growth in Q1 2025 compared to the 1% growth recorded in Q2. Analysts linked the Q2 slowdown to inventory management strategies during the 618 e-commerce festival, where manufacturers prioritized clearing existing stock over boosting new shipments. This dynamic, combined with reduced consumer confidence, contributed to the decline in unit sales despite technological advancements in product offerings.

Despite these challenges, IDC highlighted encouraging trends, including the integration of AI features into mid-range devices and the sector’s ability to sustain growth over eight consecutive quarters—a feat not seen since 2013. Anthony Scarsella, a senior IDC researcher, noted that the 1% YoY growth signal a potential inflection point for the industry. “While the market faces headwinds, the underlying momentum suggests a path toward recovery,” he added.

Looking ahead, the smartphone industry must navigate persistent macroeconomic pressures, including tariffs and inflation, while balancing innovation with affordability. The introduction of AI-driven features in mid-range models may help reignite demand, particularly in price-sensitive markets. However, the sector’s long-term trajectory will depend on its ability to address supply chain constraints and align product strategies with evolving consumer behavior in a highly competitive landscape.