The first half of 2025 was weighed down by multiple challenges - rising uncertainty following changes in U.S. tariff policy and related supply chain restructuring as well as cautious channel sentiment triggered by slow retail traffic and inventory adjustment by vendors. As a result, overall market volume remained flat compared to the previous year. However, in the third quarter, after inventory corrections, vendors actively seized channel opportunities and brought forward product launches to align with the back-to-school and festive periods. Samsung, Apple, Transsion, and Lenovo each shipped over two million additional units YoY, driving the market’s return to growth.

Vendor Highlights

Samsung remained the world’s leading vendor, shipping 60.6 million units (+6% YoY). Growth was driven by its premium Galaxy Z Fold7 / Flip7 models alongside Galaxy A07 and A17 in the mid-to-low-end segment. Strong sales of the Galaxy A series in Asia-Pacific and the Middle East contributed significantly to overall shipments.

Apple shipped 56.5 million units, up 4% YoY as the brand readied itself for the festive 4Q. The base iPhone 17 outperformed launch expectations due to improved value proposition, offering higher storage capacity without a price increase, while the revamped iPhone 17 Pro and Pro Max continue to draw strong global demand. Rising demand from emerging markets, including India, is expected to further support Apple’s full-year shipment growth.

Xiaomi maintained 1% mild annual growth with 43.4 million units shipped. While shipments in China declined after subsidy programs ended, growth in Asia-Pacific and other regions offset the decline.

Transsion rose to fourth place, with shipments up 12% YoY following completion of inventory adjustments. vivo, in fifth place, remained strong in India, overtaking Huawei in Chinese market share and growing across Asia-Pacific, Africa, and Latin America.

Regional Performance

At the regional level, shipments in North America and Greater China declined YoY while Asia-Pacific, the Middle East and Africa recorded strong growth, driving overall global market expansion in Q3.

Africa saw shipments surge 25% YoY, as Transsion - the region’s largest player - ramped up activity following the completion of inventory adjustments earlier in the year. Asia-Pacific recorded 5% YoY increase, the highest quarterly volume since Q4 2021. In contrast, North American shipments dropped once the early pull-in triggered by tariff uncertainties concluded, while China recorded its second consecutive quarter of decline following the expiration of government subsidy effects.

Market Outlook

The global smartphone market continues to show polarized growth, with expansion in both low-end and premium segments, while the mid-range segment remains weak. The ultra-low-end segment (below $100) and high-end segment (above $700) are driving overall volume growth. Despite the recovery seen in Q3, recent component shortages and rising costs have emerged as a shared industry challenge, with the effect expected to be passed through, resulting in higher pricing for new products in the short term and hindering the growth of the low end segment demand.

“Vendors may adopt different strategies to tackle this common challenge—securing channel funding early, prioritizing high-margin models, keeping mid- and low-end devices on a defensive stance, and leveraging scaling to strengthen supply chain bargaining power.