Tariff Truce & Macroeconomics Headwind Slows Down Smartphone Growth in Q22025
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Ongoing macro- economics challenges coupled with tariffs volatility has surely given a blow to the global smartphone industry. Forex instability, unemployment and inflation across regions have tapered demand, making consumers deprioritize spending on smartphones, especially in low-end segments. According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments increased just one per cent year-over-year (YoY) to 295.2 million units in the second quarter of 2025 (2Q25).
"Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest. As a result, low-end Android is witnessing a crunch weighing down overall market growth," said Nabila Popal, senior research director for Worldwide Client Devices, IDC.
Samsung gained the top spot with a 19.7 percent market share followed by Apple at 15.7 per cent in the second quarter of 2025.
"In the face of ongoing political challenges, the impact of war, and the complexities posed by tariffs, the 1 per cent growth in the smartphone market stands as a critical indicator that the market is poised to return to growth," said Anthony Scarsella, research director for Client Devices, IDC. "Q2 was packed with new models, featuring innovative designs and the powerful integration of AI, which drove the 8th consecutive quarter of growth — a feat we have not witnessed since 2013," Scarsella added.
Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest. As a result, low-end Android is witnessing a crunch weighing down overall market growth. "Samsung was able to consolidate its market leadership and outperform the overall market achieving strong growth in the quarter driven by the sales of its new Galaxy A36 and A56 products," said Francisco Jeronimo, vice president, Client Devices, IDC. "These new products introduce AI-enabled features to mid-range devices, which has been effectively used in retail stores to drive sales, as more consumers become curious about AI."
In the face of ongoing political challenges, the impact of war, and the complexities posed by tariffs, the one per cent growth in the smartphone market stands as a critical indicator that the market is poised to return to growth, IDC noted.
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