Smartphone market slows worldwide, Apple and Samsung still lead the pack

[Shawn Knight]

The big picture: The global smartphone market grew by just 0.2 percent in the first quarter of 2025. Shipments reached 296.9 million units during the first three months of the year and while growth is growth, Q1 2025 became the third consecutive quarter in which growth slowed.

Market research firm Canalys cited several reasons for the continued sluggishness in the smartphone industry. The most recent replacement cycle has come to an end and with uncertainty in the global economic landscape, several vendors are being more cognizant with regard to inventory levels.

Samsung narrowly edged out Apple for the number one spot with 60.5 million units shipped in Q1, good for a 20 percent market share but just one percent growth compared to the same period a year earlier. Apple shipped 55 million iPhones, capturing 19 percent of the market. Strong growth in the US and Asia Pacific markets helped Apple grow its market share by 13 percent year over year.

Xiaomi, Vivo, and Oppo rounded out the top five with shipments of 41.8 million, 22.9 million, and 22.7 million units, respectively. All others combined shipped 94 million units for a 32 percent share.

Canalys research manager Le Xuan highlighted strong growth in the US, which was primarily led by Apple. Cupertino was among the few that proactively built up inventory ahead of anticipated Trump tariffs, Xuan said, who further noted that the company also increased iPhone production in India to reduce its tariff risk.

Speaking of tariffs, Canalys expects them to disproportionately impact the cost of entry-level smartphones. In other words, the market for cheap smartphones will dry up as the average selling price increases.

We're already seeing signs of this with other electronics, and not just with entry-level devices. Microsoft recently surprised everyone with an unexpected Xbox price hike that sees the console go up $80 to $130 depending on the model. Games are also getting more expensive, with some upcoming premium titles now to set to retail for $80 apiece.

Image credit: Jonas Leupe

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Smartphone market slows worldwide, Apple and Samsung still lead the pack

 

[NumberNine]

Many aspects of modern commerce strike me as unsustainable, or only sustainable so long as humans can be spent. If I remember correctly, Apple sits on more cash reserves than any other tech company. They'll be fine if the bonuses are smaller this year. They should be grateful to have any growth at all, but that's not how executives are programmed to behave these days. Gotta have more, constantly. Greed. Heaven forbid they operate flat for a quarter, they'd start eating each other.

 

[RudyBob]

There is a great line from the movie "Slapshot". It goes something like "...you can only drink and screw so much." I think that applies here.

 

[Neatfeatguy]

There has been no innovation in the past decade with phone technology or software - and no, "AI" is not a software innovation. "AI" is just better written algorithms as time goes on. No one has any real reason to get a new phone if they've gotten one in the past 3-5 years.

Still rocking my S8. It has "AI" integrated into it - the software tries to best guess what app I want to use next by giving suggestions based on my app use. Which is exactly what "AI" does - takes the information it has and tries to give the best results back.

 

[Billybobjoey]

I still have an iPhone 13 Pro Max from more than 3 years ago now. I was planning on upgrading last year, that turned into this year when there wasn't anything particularly exciting with the 16. Depending on prices after the tariffs and if there's actually anything new worthwhile it might be another year or two.

 

[Theinsanegamer]

There's only so many that need a smartphone, and fewer still that can afford a flagship. The West has been saturated for awhile.

Fewer sales is good. We're seeing an increase in 3, 4, even 5 year old phones. That's a good thing, no reason to throw away tech.

 

[daffy duck]

I still have an iPhone 13 Pro Max from more than 3 years ago now. I was planning on upgrading last year, that turned into this year when there wasn't anything particularly exciting with the 16. Depending on prices after the tariffs and if there's actually anything new worthwhile it might be another year or two.

My wife's Xmas present was a mint iPhone 13 Pro Max to replace her old iPhone 10. I got it less than half the original price and she's happier than Larry. I said I'll upgrade her when iPhone 18 has been out 6 months and I can get cheap iPhone 17 Pro Max. My own phone is Sammy S21 and there has been nothing form them to even contemplate updating. I think I'll go elsewhere with my next phone. Sick of Samesung's drip feeding sidedates.

 

[scoffer]

Fear not, oh great Apple suits -for there are still untold numbers of FOMO clowns in the great big wide world.