Vendors Continue to Push Higher Price Points to Offset the Slowdown in Unit Shipments by Offering AI in More Affordable Devices

NEEDHAM, Mass., July 14, 2025 – According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments increased 1.0% year-over-year (YoY) to 295.2 million units in the second quarter of 2025 (2Q25). The smartphone market remained positive, however uncertainty fueled by tariffs volatility, on-going macro-economic challenges such as forex instability, unemployment and inflation across regions have tapered demand, making consumers deprioritize spending on smartphones, especially in low-end segments.

“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. “Additionally, lower than expected performance in China also contributed to the flat global growth. China declined in Q2 as subsidies failed to stimulate demand. Although the 618 e-commerce festival was a success in terms of sell out, OEMs and channel partners used the promotions to clear inventory rather than increase shipments. While Apple was the top brand during the promotion period, it saw a 1% drop in China in Q2, offset by strong double-digit growth in emerging markets leading to a 1.5% growth globally in the quarter.”

“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 1% 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.”