Global smartphone shipments edged up 1.0% year-over-year to 295.2 million units in Q2 2025, marking the eighth consecutive quarter of growth despite persistent economic volatility. According to preliminary data from IDC, this represents the industry’s longest growth streak since 2013. Samsung led the market with a robust 7.9% shipment increase, delivering 58 million units and capturing 19.7% market share, its strongest performance since Q4 2021.
Samsung’s Strategic Pivot Drives Growth
The Korean giant’s expansion was fueled by its revamped Galaxy A-series (A36/A56), which successfully integrated generative AI features into mid-tier devices. This strategy helped Samsung outperform the market and consolidate its leadership position. Counterpoint Research noted Samsung’s 8% YoY growth was the highest among top-five OEMs, attributing it to “regional resilience and strategic product launches” that boosted brand loyalty through foldables and AI capabilities.
Francisco Jeronimo, IDC’s Vice President of Client Devices, observed: “These new products introduce AI-enabled features to mid-range devices, effectively used in retail stores to drive sales as consumers become curious about AI”. Meanwhile, Apple grew shipments 1.5% globally to 46.4 million iPhones, though it faced a 1% decline in China despite dominating the 618 e-commerce festival.
Regional Divergence and Economic Pressure
The market’s modest growth masked significant regional disparities:
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North America, Japan, and Europe saw steady demand, partly driven by tariff-related stockpiling
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China declined due to weak consumer confidence, with government subsidies failing to stimulate upgrades
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Emerging markets like India, MEA, and Latin America delivered strong growth for Samsung and Apple
Economic headwinds—including tariff volatility, currency fluctuations, and inflation compressed low-end smartphone demand. Nabila Popal, IDC’s Senior Research Director, noted: “Economic uncertainty tends to compress demand at the lower end, where price sensitivity is highest. Low-end Android is witnessing a crunch”. This trend accelerated premiumization, with Counterpoint reporting record Q2 revenues exceeding $100 billion, a 10% YoY increase, as average selling prices rose 7%.
Innovation Amid Uncertainty
Vendors responded to economic pressures by prioritizing premium features:
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Samsung introduced AI capabilities across price tiers
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Apple leveraged ecosystem bundling and trade-in programs
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Xiaomi pushed AI-integrated devices with its HyperOS platform
Anthony Scarsella, IDC Research Director, highlighted innovation as a growth catalyst: “Q2 featured new models with innovative designs and powerful AI integration, driving the longest growth streak in 12 years”.
Market Outlook
The second half of 2025 faces challenges from persistent tariffs and component cost pressures. However, Canalys analysts note healthy channel inventories and upcoming launches could boost H2 sales. Samsung plans to emphasize flagship devices and new form factors like TriFold and XR products, while Apple will focus on its iPhone 17 launch and ecosystem bundling.
As Runar Bjørhovde of Canalys (now part of Omdia) summarized: “Vendors are aligning operational efficiency with tactical wins to navigate this complicated geopolitical maze. Current strategies position them for a flat but resilient year”.
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