On August 26, Omdia reported that global smartphone shipments fell to 288.7 million units in Q2 2025, representing a quarter-over-quarter decrease of more than 8 million units, or 2.8%. Compared to Q2 2024, shipments declined by only 200,000 units, a marginal decrease of less than 0.1%.

Samsung maintained its leading position, primarily driven by strong shipments of both its premium S-series and budget A-series smartphones. Apple, despite a slight decline in shipments, held onto second place, while Xiaomi secured third position with a very stable market share. vivo and Shenzhen Transsion Holdings Co.,Ltd. tied for fifth place, each capturing 9% market share.

The smartphone market stagnation over the past two quarters reflects increasingly severe macroeconomic challenges facing the industry. The post-pandemic replacement cycle is waning, and consumer demand remains persistently weak. Many manufacturers had set higher targets for Q2 but were forced to reduce production goals to avoid excess inventory.

The exception was in the United States, where significant uncertainty surrounding the Trump administration's tariff policies and timeline prompted suppliers including Apple, Samsung, and Motorola (LENOVO GROUP) to front-load shipments and maintain high inventory levels throughout the quarter.

Samsung achieved modest year-over-year growth in Q2, benefiting from balanced growth across both premium and mid-to-low-end markets. To minimize the impact of potential U.S. tariff increases, Samsung increased shipments to the U.S. for the second consecutive quarter, driving overall Q2 shipment growth.

Apple experienced declining sales following the launch of the iPhone 16e in Q1 2025, as its single-camera design reduced consumer perceived value and Apple Intelligence features were not yet implemented, weakening consumer interest in the new model. Conversely, the iPhone 15 and iPhone 13 continued to drive demand for Apple's lower-priced products.

XIAOMI-W shipments remained essentially flat year-over-year, with only a modest increase of 100,000 units (0.2% growth) from 42.3 million to 42.4 million units. This demonstrates Xiaomi's market position built through ecosystem investments and strong brand recognition.

With surging shipments in India, vivo displaced OPPO to claim fourth place and regained the top position in India during Q2 2025. Meanwhile, many of vivo's new product launches received strong promotion from regional channel partners, while key competitors Xiaomi and Shenzhen Transsion Holdings Co.,Ltd. adopted more cautious strategies.

Both Shenzhen Transsion Holdings Co.,Ltd. and OPPO saw shipment declines in Q2 2025, as overall economic uncertainty most significantly impacted the low-end market, with demand also affected by price sensitivity. Simultaneously, Shenzhen Transsion Holdings Co.,Ltd. completed inventory adjustments that had been ongoing over recent quarters.

Honor, LENOVO GROUP, and Huawei all achieved strong growth during the quarter. Huawei particularly continued its robust growth momentum since 2021, with a 16.0% increase. Its primary market remains China, where it reclaimed the top position and captured a strong share of the premium market.

Honor's sales grew 2.0% compared to Q2 2024, benefiting from continued expansion into new markets including Latin America and Europe. LENOVO GROUP sales increased 5.6%, partly due to adopting a strategy similar to Samsung's, front-loading shipments to the U.S. market ahead of potential further tariff impacts.

The current global political and economic macro environment remains highly uncertain, with trade wars from protectionism and hot conflicts from geopolitics leading to reduced corporate investment expansion globally, slowing global economic growth, and decreasing income for middle and low-income households, correspondingly reducing their smartphone spending budgets. The global smartphone market is expected to contract in 2025.

Smartphone manufacturers are actively pursuing hardware innovations to drive replacement demand among existing users to maintain market scale. Silicon-carbon anode battery technology entered mass commercial use in 2025, significantly increasing battery capacity in newly released smartphones and substantially improving battery life. Simultaneously, phones are entering an era of ultra-thin designs, with Samsung already launching the ultra-thin Galaxy S25 Edge smartphone, and Apple expected to introduce the ultra-thin iPhone 17 Air in September, leading other Android manufacturers to follow suit with thin designs.

Additionally, foldable smartphones have entered the sub-9mm era, while Apple's foldable smartphone under development is expected to adopt new folding structure designs to eliminate creasing, potentially driving foldable smartphone market scale to new heights in 2026.