AI-powered strategy helps Samsung retake lead from Apple in Q1 2025 smartphone market: IDC Report – Crypto News

The global smartphone market saw modest year-on-year growth of 0.4 per cent in the first quarter of 2025, with total shipments reaching 301.4 million units, according to the latest figures from the International Data Corporation (IDC).

Amid a backdrop of heightened geopolitical tensions and tariff uncertainty between the United States and China, Samsung reclaimed its position as the world’s leading smartphone vendor, edging past Apple thanks to its AI-integrated product portfolio.

Samsung shipped 60.6 million units during the quarter, maintaining a 20.1 per cent market share, a slight increase of 0.6 per cent compared to Q1 2024. The South Korean tech giant’s renewed dominance was fuelled by the strong performance of its flagship Galaxy S25 and the more affordable Galaxy A36 and A56, which brought advanced AI features to the mid-range segment.

“Samsung’s focus on embedding AI capabilities across its product range — not just in premium models but in accessible mid-tier devices – has resonated with consumers, particularly in cost-sensitive markets,” said Francisco Jeronimo, Vice President of Client Devices at IDC. “This broad AI strategy has given Samsung a crucial competitive edge at a time when market dynamics are shifting rapidly.”

Apple, meanwhile, posted its best-ever Q1 in terms of units shipped, delivering 58.7 million iPhones, an 11.6 per cent increase year-on-year. This impressive growth was largely driven by an aggressive stockpiling strategy ahead of anticipated U.S. tariffs on Chinese imports, as well as robust demand in several international markets. Despite this, Apple narrowly missed out on the top spot and faced headwinds in China, where its Pro models did not benefit from a government subsidy scheme targeting devices under CNY6,000 (approx. $820).

“The U.S. market grew by 8.3 per cent in Q1, reflecting strong consumer demand and urgency to purchase ahead of potential price increases,” noted Anthony Scarsella, IDC’s Research Director for Client Devices. “Apple capitalised on this moment well, but ongoing volatility in trade policy makes sustained momentum uncertain.”

Chinese brands also made notable gains, particularly within their domestic market. Xiaomi and Vivo benefitted significantly from a state-backed subsidy scheme aimed at boosting consumption. Xiaomi shipped 41.8 million units (up 2.4 per cent), while Vivo saw a 6.5 per cent increase, reaching 22.7 million units. OPPO, despite regaining fourth place, experienced a decline of 6.6 per cent due to weaker international performance.

The IDC report also revealed a shrinking share for smaller vendors grouped under the “Others” category, whose collective shipments dropped 6.1 per cent year-on-year, indicating continued consolidation among the top players.

“Looking ahead, vendors will need to balance innovation, affordability, and geopolitical risk in order to sustain growth,” concluded Jeronimo. “Samsung’s current lead highlights how strategic product development, especially around emerging technologies like AI, can shape market leadership even in uncertain times.”