In 1Q25, global smartphone sales inched up only 1%, as economic jitters, soft demand, and trade tensions kept vendors on edge despite early optimism.
The global smartphone market expanded by just 1% year-on-year (YoY) in the first quarter of 2025, according to data from Canalys, now under Omdia. This slight growth occurred despite persistent economic uncertainty, subdued consumer confidence, and lingering channel inventory issues.
Among the vendors, Samsung secured the top spot with a 20% market share, unchanged from Q1 2024. Apple followed closely, increasing its share from 16% to 18%. Xiaomi held steady at 14%, maintaining its third-place position. vivo and OPPO each captured 8% of the market, with vivo rising one point from 7% a year ago. Other brands collectively accounted for 32%, down from 34% in Q1 2024.
Canalys Research Manager Amber Liu noted that the quarter was marked by greater-than-expected volatility. “Vendors pushed high volumes into channels after a strong Q4 2024, aiming to boost share. However, weaker-than-expected consumer demand slowed inventory turnover and reduced early 2025 momentum,” she said.
Unlike the stronger rebound in 2024, driven by post-pandemic upgrades and budget-friendly options, this year’s recovery is more fragile.
Senior Analyst Sanyam Chaurasia pointed to global economic pressures as the cause of muted seasonal performance. Even key festive periods like Ramadan failed to lift demand significantly.
“In response to a more gradual recovery in volume, vendors are prioritising profitability while remaining active and flexible with market investments,” he said.
Escalating trade tensions have also introduced fresh uncertainty. Liu highlighted that major vendors in the US, such as Apple, Samsung, and Lenovo, face weaker local demand and rising operational risks due to potential new tariffs. Apple reportedly advanced some Q2 shipments into early April to counter possible cost increases.
With the scope and timing of new tariffs still unclear, manufacturers are accelerating efforts to diversify production and optimise logistics. These shifts will impact profits and lengthen strategic planning across the industry in 2025.
Despite signs of recovery, the global smartphone market remains vulnerable to shifting economic and political dynamics, with vendors balancing cautious optimism against emerging risks.
