IDC: The global smartphone market continued to grow 1.5% year-on-year in the first quarter despite the tense situation

The Zhitong Finance App learned that preliminary data from the latest “Global Quarterly Mobile Phone Tracking Report” released by the International Data Corporation (IDC) shows that in the first quarter of 2025 (1Q25), global smartphone shipments increased 1.5% year-on-year to 304.9 million units. Market performance is in line with IDC forecasts. Manufacturers increased production in response to the US government's additional tariffs on imported Chinese goods.

Francisco Jeronimo, vice president of terminal equipment research at IDC, said that in the face of growing geopolitical uncertainty and the potential threat of the US drastically raising tariffs on imported goods from China, manufacturers strategically accelerated production progress in the first quarter of 2025 and shipped large quantities ahead of schedule, especially to key US markets. This supply-side surge is aimed at mitigating the risk of potential cost increases and supply disruptions, causing first-quarter shipments to exceed expectations based on potential consumer demand.

Ryan Reith, vice president of global terminal equipment research at IDC, believes that the US government recently suspended tariffs on smartphones imported from China, which has provided US companies with a temporary breathing space. However, as tariffs continue to fluctuate, US companies are still highly dependent on the Chinese supply chain, which makes future planning challenging, and many companies face high uncertainty when making important decisions. Currently, US smartphone brands should make full use of the tariff exemption period to increase production and shipments as much as possible. But on the other hand, economic uncertainty could dampen consumer demand in the coming months.

Market performance of the top five global smartphone manufacturers in the first quarter of 2025

Globally, most leading smartphone manufacturers achieved year-over-year growth in the first quarter of 2025. Thanks to the Chinese government's subsidy policy introduced last year and extended to the smartphone sector in January of this year, Chinese manufacturers have performed well in the domestic market.

The main manufacturers performed as follows:

With the continued success of the Galaxy S25 high-end models and the Galaxy A series (particularly the latest Galaxy A36 and A56, which provide AI features at a more affordable price), Samsung has regained its number one position in the mid-range market.

Apple (AAPL.US)'s first-quarter shipments reached a record high. On the one hand, it was to avoid tariffs and advance preparation; on the other hand, it also shipped large quantities to other regions because channel vendors feared that supply chain disruptions would cause inventory shortages and price increases. However, Apple's performance in the Chinese market continues to decline because its Pro series products are not covered by the Chinese government's subsidy policy.

The growth of Xiaomi (01810) mainly depends on the Chinese government's subsidy policy, which has had a positive impact on sales of mid-range products and contributed to its significant growth in the Chinese market.

Although OPPO faces strong competitive pressure in the international market, it has regained its fourth position in the world thanks to continued growth in the Chinese market.

Vivo grew 6.3% year over year. In addition to benefiting from China's subsidy policy, it relied on low- and mid-range products to drive strong performance in the international market.

Market performance of China's top five smartphone manufacturers in the first quarter of 2025

In the first quarter of 2025 (1Q25), Chinese smartphone market shipments increased 3.3% year-on-year to 71.6 million units, driven by the “state subsidy” policy combined with the peak sales season during the Spring Festival, continuing the growth trend of the past five quarters, but the increase was lower than IDC's expectations. The “state subsidy” policy has failed to more effectively drive the growth of market demand. As the international geopolitical and macroeconomic environment faces strong challenges, even if the “state subsidy” policy is adjusted to be more consumer-friendly in the future, the Chinese smartphone market will still need to cope with greater pressure in 2025.