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Tariff Truce & Macroeconomics Headwind Slows Down Smartphone Growth in Q22025
Tariff Truce & Macroeconomics Headwind Slows Down Smartphone Growth in Q22025

Entrepreneur

time15-07-2025

  • Business
  • Entrepreneur

Tariff Truce & Macroeconomics Headwind Slows Down Smartphone Growth in Q22025

According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments increased just one per cent year-over-year (YoY) to 295.2 million units in the second quarter of 2025 (2Q25). You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ongoing macro- economics challenges coupled with tariffs volatility has surely given a blow to the global smartphone industry. Forex instability, unemployment and inflation across regions have tapered demand, making consumers deprioritize spending on smartphones, especially in low-end segments. According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments increased just one per cent year-over-year (YoY) to 295.2 million units in the second quarter of 2025 (2Q25). "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. Samsung gained the top spot with a 19.7 percent market share followed by Apple at 15.7 per cent in the second quarter of 2025. "In the face of ongoing political challenges, the impact of war, and the complexities posed by tariffs, the 1 per cent 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," Scarsella added. 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. "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 one per cent growth in the smartphone market stands as a critical indicator that the market is poised to return to growth, IDC noted.

Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs
Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs

Indian Express

time15-07-2025

  • Business
  • Indian Express

Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs

The growth of global smartphone shipments slowed in the second quarter as buyers, wary of U.S. tariff-driven economic uncertainty, curbed spending, especially on low-end devices, data from research firm International Data Corp showed on Monday. Shipments increased by 1% in the April-June quarter to 295.2 million units, according to the preliminary data, slower than the 1.5% growth recorded in the previous quarter. Demand in China declined in the second quarter, as subsidies failed to stimulate demand, with Apple seeing a 1% drop. Overall demand has tapered as consumers deprioritize spending on smartphones, especially in low-end segments. Sellers have continued to push higher price points to make up for the slowdown in 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 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 at IDC. '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. Samsung saw the highest growth, with shipments increasing 7.9% to 58 million units in the quarter. Apple roughly maintained its market share as the second-top smartphone seller, with a growth of 1.5% in shipments. IDC had in May slashed its 2025 global smartphone shipment growth forecast to 0.6% from 2.3%, citing tariff-driven economic uncertainty and a pullback in consumer spending.

IDC sees growth in global smartphone market, despite tariffs, macroeconomic uncertainty
IDC sees growth in global smartphone market, despite tariffs, macroeconomic uncertainty

Time of India

time15-07-2025

  • Business
  • Time of India

IDC sees growth in global smartphone market, despite tariffs, macroeconomic uncertainty

Global smartphone shipments increased 1% to 295.2 million units in the second quarter, despite tariff concerns and macroeconomic uncertainty, according to preliminary data from research firm IDC . Samsung shipped 58 million units in the quarter, the highest, led by sales of its new AI-enabled Galaxy A36 and A56 products. Demand in China declined in the second quarter, as subsidies failed to stimulate demand, with Apple seeing a 1% drop in the quarter. Overall demand has tapered as consumers deprioritize spending on smartphones, especially in low-end segments. Sellers have continued to push higher price points to make up for the slowdown in 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 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 at IDC. "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. Global smartphone shipments grew 1% to 295.2 million units in the second quarter. Samsung and Apple shipments increased 7.9% and 1.5% in the quarter, respectively. IDC had in May slashed its 2025 global smartphone shipment growth forecast to 0.6% from 2.3%, citing tariff-driven economic uncertainty and a pullback in consumer spending.

Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs
Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs

The Hindu

time15-07-2025

  • Business
  • The Hindu

Global smartphone shipments growth slows in Q2 as tariff uncertainty weighs

The growth of global smartphone shipments slowed in the second quarter as buyers, wary of U.S. tariff-driven economic uncertainty, curbed spending, especially on low-end devices, data from research firm International Data Corp showed on Monday. Shipments increased by 1% in the April-June quarter to 295.2 million units, according to the preliminary data, slower than the 1.5% growth recorded in the previous quarter. Demand in China declined in the second quarter, as subsidies failed to stimulate demand, with Apple seeing a 1% drop. Overall demand has tapered as consumers deprioritise spending on smartphones, especially in low-end segments. Sellers have continued to push higher price points to make up for the slowdown in 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 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 at IDC. "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. Samsung saw the highest growth, with shipments increasing 7.9% to 58 million units in the quarter. Apple roughly maintained its market share as the second-top smartphone seller, with a growth of 1.5% in shipments. IDC had in May slashed its 2025 global smartphone shipment growth forecast to 0.6% from 2.3%, citing tariff-driven economic uncertainty and a pullback in consumer spending.

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