MUMBAI: According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone1 shipments experienced a 1.5 per cent year-over-year increase in the first quarter of 2025, reaching 304.9 million units. This performance aligned with IDC forecasts, attributed to manufacturers increasing production in anticipation of potential US tariffs on imports from China.

IDC vice-president Francisco Jeronimo noted that geopolitical uncertainty and the threat of US tariff hikes on Chinese goods led vendors to accelerate production and pull forward significant shipment volumes, particularly into the US market, during the first quarter. This supply-side action resulted in shipment figures exceeding levels expected based on underlying consumer demand.

IDC group vice president  Ryan Reith highlighted that while the US government's recent pause on smartphone import tariffs from China provides temporary relief, the continued reliance on China's supply chain and ongoing tariff volatility create challenges for future planning and decision-making for many companies. He suggested that US smartphone brands should leverage the tariff exemption to maximize building and shipping. Additionally, he cautioned that economic uncertainty could potentially dampen consumer demand in the coming months.

The US smartphone market saw growth of over five per cent in the first quarter, despite the impact of tariffs and trade tensions on disposable income. IDC research director Anthony Scarsella attributed this growth to increased consumer interest in new models from leading manufacturers and a sense of urgency to purchase before potential price increases. He also suggested that the 90-day tariff pause could further boost sales in the second quarter.

Globally, the first quarter saw growth among major smartphone vendors, particularly Chinese companies in their domestic market, supported by government subsidies extended to smartphones in January 2025. This subsidy program aims to stimulate consumption for products priced below yuan 6,000 ($820).

Among the top vendors:
* Samsung regained market leadership, driven by the continued success of its Galaxy S25 premium devices and the mid-range Galaxy A series, including the latest Galaxy A36 and A56 featuring more affordable AI capabilities.

* Apple achieved its highest first-quarter shipments ever, attributed to stockpiling to mitigate potential US ariffs and to address potential supply chain disruptions in other regions. However, its performance in China declined as its Pro models were not included in the Chinese government subsidy program.

* Xiaomi's performance was primarily driven by growth in China due to the government subsidies, positively impacting sales of its mid-range products.

* Oppo regained the fourth position despite a decline in shipments due to weaker performance in international markets, which was not fully offset by growth in China.

* Vivo experienced substantial year-on-year growth of 6.3 per cent, supported by subsidies in China and growth in international markets, with strong performance in low-end devices and the V series.

In conclusion, while the global smartphone market showed positive shipment growth in the first quarter of 2025, the ongoing US-China trade war and tariff volatility continue to present significant concerns for the remainder of the year.