Global smartphone shipments grew 2.6% year-on-year to 322.7 million units in the third quarter of 2025, signaling continued recovery in the market as consumers gravitated toward premium devices and affordable AI-powered models, according to preliminary data from research firm IDC.
IDC said the rebound was driven largely by strong demand in the premium segment, where consumers upgraded to the latest devices featuring innovative designs and AI capabilities.
“The smartphone industry continues its upward trajectory, posting solid growth — a remarkable achievement given persistent economic uncertainty and tumultuous tariff dynamics,” said Nabila Popal, IDC’s senior research director for Worldwide Client Devices.
Popal added that smartphone makers, or OEMs, have successfully combined innovation in both hardware and software with creative financing and trade-in programs that have made upgrading “a no-brainer” for many consumers.
Apple, Samsung Set New Records
Apple and Samsung led the market with strong performances, buoyed by the launch of their newest flagship models.
Francisco Jeronimo, IDC vice president for Client Devices, said both companies “posted strong results as their latest devices encouraged consumers to upgrade in the premium segment.”
Apple achieved its best-ever results for a July quarter, with robust demand for the new iPhone 17 lineup, whose pre-orders exceeded those of the previous generation.
Meanwhile, Samsung posted its strongest July-quarter growth on record, driven by the Galaxy Z Fold 7 and Galaxy Z Flip 7, which outperformed all earlier foldable models and reignited interest in the foldables category.
Rising Challengers: Xiaomi, Transsion, vivo
Outside the top two vendors, other brands also made significant gains.
Xiaomi strengthened its foothold in Europe and Latin America through its popular Redmi Note and Poco series.
Transsion saw rapid expansion across North and East Africa with competitive sub-$200 smartphones and strong local distribution.
Vivo regained market share in several emerging markets thanks to refreshed midrange devices featuring AI-enhanced imaging and aggressive online promotions.
Outlook: Momentum to Continue Through Year-End
IDC maintains an optimistic forecast for the rest of 2025.
“The accelerated demand for the latest AI-enabled products is expected to lead to a strong finish for 2025,” said Anthony Scarsella, IDC research director for Mobile Phones.
He noted that aggressive pricing strategies and a wide array of new models from top vendors will sustain the market’s momentum through the fourth quarter.
Overall, IDC’s data underscores a renewed sense of optimism in the global smartphone industry — one now being reshaped by AI innovation, flexible financing, and an increasingly competitive premium market.
COMMENTS