The global smartphone market grew by just 0.2% last quarter, according to the latest Canalys findings. While that marks a slight increase, it’s a notable decline compared to previous growth numbers and represents the third consecutive quarter of slowed growth.
“Markets that had shown strong momentum over the past year, such as India, Latin America, and the Middle East, are now experiencing notable declines in Q1 2025, indicating saturation in replacement demand for mass-market products,” said Toby Zhu, principal analyst at Canalys.
Samsung Leads, Apple Close Behind
Samsung shipped 60.5 million units in Q1 2025, leading all smartphone carriers. Canalys attributed this to the launch of several popular models and new A-series pricing that contributed to the brand’s strong performance.
The report noted that most Android brands adjusted inventory in the first quarter to avoid disruptions and better manage product pricing.
Meanwhile, the US smartphone market grew by 12% year over year in Q1, driven largely by Apple’s iPhone line, which helped Apple become the second-leading carrier globally, shipping 55 million units.
Tariffs Add Uncertainty for the Rest of 2025
Despite the strong numbers, tariff concerns could disrupt momentum.
“Apple proactively built up inventory ahead of anticipated tariff policies,” said Le Xuan Chiew, research manager at Canalys. “While iPhones produced in Mainland China still account for the majority of US shipments, production in India ramped up toward the end of the quarter, covering standard models of the iPhone 15 and 16 series, alongside accelerating production of the 16 Pro series.”
Chiew added that the US market is expected to be volatile for the next two to three quarters depending on how tariff policies unfold.
What Tariffs Could Mean
Tariffs could lead to a shift in Apple’s production strategy, with the company possibly moving more manufacturing from China to India.
Canalys also warned that tariffs might cause limited availability of cheaper models, higher prices, and added uncertainty for Android products as well.
The market may be growing, but the path forward is anything but stable.
Market Uncertainty Reigns as S&P 500 Struggles to Find Its Bottom