Samsung surpasses Apple in Q1 2025, thanks to AI-driven phones: IDC Report

In the first quarter of 2025, the global smartphone market saw a modest increase of 0.4%, reaching total shipments of 301.4 million units, as reported by the International Data Corporation (IDC). Amid ongoing geopolitical tensions and uncertainties surrounding tariffs between the United States and China, Samsung has successfully regained its status as the world’s top smartphone manufacturer, surpassing Apple with its AI-enhanced device lineup. Samsung shipped an impressive 60.6 million smartphones during this period, capturing a 20.1% market share, which represents a slight growth of 0.6% compared to the same quarter in 2024. This resurgence can be attributed to the strong market performance of its flagship Galaxy S25 and the budget-friendly Galaxy A36 and A56, both of which feature advanced AI capabilities aimed at the mid-range market. According to Francisco Jeronimo, IDC's Vice President of Client Devices, "Samsung’s strategy of integrating AI features across its entire product range — not only in high-end models but also in more affordable devices — has resonated well with consumers, particularly in markets sensitive to pricing. This comprehensive approach to AI has provided Samsung with a significant competitive advantage during these swiftly changing market conditions." On the other hand, Apple recorded its highest Q1 performance in terms of iPhones shipped, delivering 58.7 million units, marking an 11.6% year-on-year increase. This growth was primarily fueled by a proactive stockpiling strategy in anticipation of U.S. tariffs on Chinese imports and strong demand across various international markets. Despite this success, Apple narrowly fell short of the top position and encountered challenges in China, where its Pro models did not benefit from a government subsidy program targeting devices priced under CNY6,000 (approximately $820). Anthony Scarsella, IDC’s Research Director for Client Devices, noted that the U.S. market grew by 8.3% in Q1, indicating strong consumer demand and urgency to buy ahead of potential price hikes. "Apple effectively capitalized on this situation, but the ongoing trade policy instability raises questions about future momentum," he cautioned. Chinese brands also made significant strides, particularly in their home market. Xiaomi and Vivo saw substantial benefits from a state-supported subsidy initiative aimed at boosting consumer spending. Xiaomi shipped 41.8 million units, reflecting a 2.4% increase, while Vivo experienced a 6.5% rise, reaching 22.7 million units. Although OPPO managed to regain the fourth position in the market, it faced a decline of 6.6%, attributed to weaker performance internationally. The IDC report further highlighted a downturn for smaller vendors categorized as “Others,” whose collective shipments dropped by 6.1% year-on-year, signaling ongoing consolidation among leading brands. Jeronimo concluded, "To maintain growth, vendors must navigate the delicate balance of innovation, affordability, and geopolitical risks. Samsung’s current lead underscores how strategic product development, especially in emerging technologies like AI, can redefine market leadership even amid uncertainty."