Global smartphone sales fall for first time in six quarters

The global smartphone market experienced a marginal decline in the second quarter of 2025, marking the industry’s first downturn in six consecutive quarters, according to the latest research from Canalys.

The small drop in shipments highlights stable vendor performances despite growing uncertainties in the global macroeconomic environment and subdued consumer sentiment.

Samsung retained its leading position in the market with a 19 per cent share, largely due to the success of its Galaxy A series.

Apple secured second place with a 16 per cent market share, followed by Xiaomi, which maintained a steady performance with 15 per cent.

vivo and TRANSSION completed the top five, each capturing a 9 per cent share of the market.

“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, now part of Omdia.

“Vendors are closely aligning operational efficiency prioritizations and tactical wins with scale,” he added.

“Many vendors had greater aspirations in Q2 but were forced to cut their production targets to avoid excess inventory,” he said.

“The exception was in the US, where major uncertainties around tariff policies and timelines from the Trump administration have encouraged vendors such as Apple, Samsung and Motorola (Lenovo) to maintain high inventory levels and frontload devices throughout the quarter,” he added.

“These are key operational tactics needed to navigate a complicated geopolitical and regulatory maze,” he said.

“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 for Smartphone Research at Canalys, now part of Omdia.

“Many consumers who delayed purchases in the first half of 2025 are anticipated to buy during the major shopping festivals and events toward the end of the year,” she said.

“Effective pricing and clever promotions are as important as ever for vendor success, as shown by Huawei’s and Apple’s reception during China’s 618 shopping festival in May,” she added.

“Recent launch events have highlighted slimmer designs, ecosystem innovation and privacy protection narratives to tempt consumers to upgrade,” she said.

“But price-conscious consumers looking for a good deal to replace their old devices will be the main demand driver,” she added.

“Additionally, current healthy inventory levels in the channel will allow a boost to the replenishment of recently launched devices, which will help the industry return to growth in the second half of the year,” she said.