The global smartphone market is navigating a difficult phase, as underscored by a recent report from IDC, which has adjusted its worldwide smartphone sales projection for 2025 to a mere 0.6% year-over-year increase, totaling 1.24 billion units. This revision arises amid economic challenges, particularly due to U.S. tariffs affecting the electronics industry.
The report suggests that the smartphone market will persist in experiencing slow growth over the coming five years, with an average growth rate of only 1.4%. Numerous factors contribute to this pattern, including consumers retaining their devices for longer periods and an increasing inclination towards refurbished smartphones, which present a more cost-effective option.
In spite of ongoing trade conflicts between the U.S. and China, these two countries continue to be the main catalysts for smartphone sales growth. However, the report forecasts a 1.9% decrease in Apple’s sales in China, as Huawei captures more market share.
The U.S. market is anticipated to grow by 1.9% in 2025, a decrease from a previous projection of 3.3%, attributed to uncertainties and price hikes associated with tariffs. In China, Android smartphone sales are expected to increase by 3% year-over-year, bolstered by government subsidies and discounts.
The report further emphasizes the possible repercussions of U.S. tariff increases on smartphones, generating uncertainty for manufacturers outside the U.S. Nevertheless, nations such as India and Vietnam are emerging as significant alternatives for smartphone manufacturing.
In a recent turn of events, judges from the U.S. Court of International Trade have blocked President Trump’s proposed 10% tariffs on imports from major trading partners, ruling that the administration acted beyond its authority. This ruling may offer temporary respite to the smartphone sector, but the long-term perspective remains unclear.
