The global smartphone market recorded just 1% growth year-on-year in the first quarter of 2025, with persistent macroeconomic pressures continuing to weigh on consumer demand, according to analyst firm Canalys.
Samsung led the market with a 20% share, followed by Apple at 18%. Xiaomi held onto third place with 14%, maintaining its spot among the top three vendors. Chinese manufacturers vivo and Oppo rounded out the top five, each claiming 8% of the market.
Amber Liu, Research Manager at Canalys, described the market as “more volatile than anticipated” in the first quarter, despite expectations of continued recovery.
“Vendors entered 2025 with momentum after a strong end to 2024, pushing large volumes of stock into the channel in an effort to capture market share. However, slower-than-expected sales at the consumer level have led to extended inventory cycles and weakened momentum in early 2025,” Liu explained. “Unlike last year’s rebound, which was driven by post-pandemic upgrades and affordable mass-market devices, this year’s recovery appears much more fragile.”
Liu also warned of further headwinds for vendors due to planned tariff increases by the US government.
“In the US, major players like Apple, Samsung and Lenovo are already facing sluggish domestic demand, and the threat of rising operational costs due to upcoming tariffs,” she said. “Apple responded by advancing its Q2 shipments into early April to stay ahead of potential cost increases.”
Globally, the full extent and timing of the new tariffs remain unclear, but manufacturers are bracing for increased component costs and weaker export demand in key markets.
In response, Liu said vendors and supply chain partners are ramping up efforts to diversify their operations – shifting manufacturing hubs, revisiting sourcing strategies, and refining logistics processes.
“These shifts are likely to pressure margins and extend decision-making timelines across the global smartphone industry throughout 2025,” she concluded.
