Worldwide smartphone market grows 1.0% in Q2 2025 despite global uncertainty and weak demand in China, according to IDC

Worldwide smartphone market grows 1.0% in Q2 2025 despite global uncertainty and weak demand in China, according to IDC

The worldwide smartphone market experienced a modest 1.0% growth in Q2 2025, according to IDC. This growth was driven by strong performances in various regions, despite global economic uncertainty and weak demand in China [2].

Apple's China iPhone sales climbed 8% year-over-year (YoY) in Q2 2025, marking the first uptick in two years. This rebound was attributed to aggressive pricing strategies, including a 31% discount on the iPhone 16 Pro 128 GB model and leveraging government subsidies [2]. Huawei also posted a 12% YoY surge in sales during the same period, positioning itself to retake the top spot in the market [2].

China's smartphone market, which had been shrinking for most of 2022-2024, saw modest growth in 2024. To stimulate spending, the Chinese government rolled out nationwide subsidies in January 2025. Local champions such as Huawei and Xiaomi capitalized on this by offering competitive pricing and promoting generative-AI features [2].

The aggressive pricing strategies employed by Apple and other manufacturers have led to a short-term volume rebound. However, these moves have also put pressure on margins and positioning. Apple's ¥2,500 cut on the iPhone 16 Pro 128 GB model, bringing it down to ¥5,499, pushed the model below the subsidy ceiling and into shoppers' carts within days of launch [2].

The overall smartphone market growth in Q2 2025 was a testament to the resilience of the industry in the face of economic headwinds. The market's performance highlights the importance of strategic pricing and government support in driving demand, particularly in regions like China.

References:
[1] https://www.electronicsweekly.com/news/business/q2-pcs-up-6-5-yoy-2025-07/
[2] https://www.ciw.news/p/smartphone-q2-2025