Global smartphone market grows just 1% in Q1
The worldwide smartphone market grew just 1% year on year in
Q1 2025, according to the latest research from mobile telephony research firm
Canalys, and the experts warn the recovery is fragile.
Canalys attributes the modest growth to persistent
macroeconomic headwinds, cautious consumer sentiment and delayed channel inventory
digestion.
Of the main vendors, Samsung retained its lead with an
unchanged 20% market share, Apple crept up on its heels with a two points gain
for 18% share, and the Chinese trio of Xiaomi (14%), Vivo (8%), and Oppo (8%)
all unchanged.
“The overall environment proved to be more volatile than
anticipated in Q1 2025, while the global market continued its recovery,” said
Amber Liu, Research Manager at Canalys.
“Following a strong finish to 2024, vendors pushed high
inventory volumes into channels to gain share.
"But slower-than-expected sell-through extended
inventory cycles, dampening sell-in momentum in early 2025.
"Unlike 2024’s recovery, which was driven by a
post-pandemic upgrade cycle and mass-market affordability, this year’s rebound
is proving more fragile.”
Sanyam Chaurasia, senior analyst at Canalys said cautious
consumer sentiment driven by global macroeconomic challenges muted the typical
seasonal uplift in Q1.
“Even festive periods in key markets, such as Ramadan,
delivered softer demand than expected," Chaurasia said.
"In response to a more gradual recovery in volume,
vendors are prioritising profitability while remaining active and flexible with
market investments.
"Tactics include dynamic channel incentive schemes to
encourage sell-in, collaborations with distributors to expand financing in
emerging markets and agile channel pricing strategies to strike a balance
between overall profitability and price competitiveness.”
The Canalys analysts have also attributed the anaemic market
growth to tensions in global trade due to US tariffs.
“Escalating global trade tensions are creating fresh
uncertainties for smartphone vendors in 2025,” said Liu.
“In the US, vendors such as Apple, Samsung and Lenovo are
already grappling with weaker domestic demand and the looming threat of
increased operational costs due to impending tariffs.
"In response, Apple front-loaded shipments in early
April, pulling forward Q2 inventory to mitigate potential cost hikes.
"Globally, while the full scope and timing of the new
tariffs remain uncertain, vendors are bracing for higher component prices and
softer export demand in affected markets.
"To reduce exposure, vendors and supply chain partners
are accelerating diversification strategies, shifting production bases,
reassessing sourcing models and optimising logistics.
"These dynamics are expected to disrupt profitability
and extend planning cycles throughout the worldwide smartphone industry in
2025.”
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