With the market’s YoY growth coming to 0% in 2Q25, can the smartphone industry bounce back after its first dip in six quarters? With cautious buyers, vendors are betting on festive comebacks, says report. Samsung leads the quarter.
Smartphone shipments worldwide stood at just under 300 million units in Q2 2025, marking the industry’s first contraction in six quarters, according to a recent data by Canalys, now a part of Omdia.
Marginally lower than Q1 2025, Q2’s year-on-year growth has flattened to 0%, compared to a peak of 12% in Q4 2023, confirming a broader trend of stagnation in shipment volumes.
After a strong rebound from the lows of 2022, when growth had dipped to -18% in Q4 2022, the global market now appears to be entering a plateau. The report highlighted that the slowdown stems from a combination of subdued consumer demand, macro uncertainties, and the subsiding refresh cycle of pandemic-era devices.
In terms of market share, Samsung maintained its top position with 19%, driven by strong sales of its Galaxy A series. Apple followed with 16%, while Xiaomi maintained a steady 15%. vivo and TRANSSION each held 9%, rounding out the top five. Most vendors experienced minimal year-on-year changes, with Apple and TRANSSION declining by 2%, while Samsung grew by 3%.
“Despite a market slowdown in Q2, driven by the fading replacement wave of pandemic-era devices and continued weak consumer demand, most vendors delivered stable and resilient performances,” said Runar Bjørhovde, Senior Analyst at Canalys.
He added, “Many vendors had greater aspirations in Q2 but were forced to cut their production targets to avoid excess inventory.” One exception was the US market, where geopolitical uncertainty has prompted major vendors to frontload inventory.
“After a slow start to 2025, vendors are now well placed and ready to navigate what is expected to be a flat year for the smartphone market,” said Amber Liu, Practice Leader at Canalys.
Looking ahead, she noted that upcoming shopping festivals and targeted promotions will be critical for driving demand in H2 2025, especially among price-conscious consumers.
As vendors optimise operational efficiency and lean on inventory buffers, the report predicts that the market is expected to stabilise. However, innovation, affordability, and timing will determine whether the industry can return to sustainable growth in the coming quarters.
