Smartphone market in crisis - Tariff uncertainty affects global growth
Global smartphone shipment growth slowed in the second quarter as buyers, wary of economic uncertainty stemming from U.S. tariffs, held back spending, especially on low-end devices, data from research firm International Data Corp (IDC) showed.
Shipments rose 1% in the April-June quarter to 295.2 million units, according to preliminary data, slower than the 1.5% growth recorded in the previous quarter. Demand in China fell in the second quarter as subsidies failed to stimulate demand, with Apple seeing a 1% decline.
Overall demand has been subdued as consumers cut spending on smartphones, especially in the low-end segments. Vendors have continued to push higher price points to offset slowing unit shipments by offering AI in more affordable devices, IDC said.
"In the face of ongoing political challenges, the impact of war, and the complexities presented by tariffs, the 1% growth in the smartphone market stands as a critical indicator that the market is poised to return to growth," the study said.
"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 crisis that is weighing on overall market growth."
Samsung saw the highest growth, with shipments rising 7.9% to 58 million units in the quarter. Apple roughly maintained its market share as the second-largest smartphone vendor, with a 1.5% increase in shipments.
IDC in May had cut its 2025 global smartphone shipment growth forecast to 0.6% from 2.3%, citing economic uncertainty driven by tariffs and a pullback in consumer spending.

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