New phones and AI features help global smartphone market grow, IDC reports

Global smartphone market grows

Global smartphone shipments rose 2.6 percent year-over-year to 322.7 million units in the third quarter of 2025, according to IDC. Growth was fueled by consumer upgrades, driven by innovative device designs and more affordable AI-enabled smartphones that appeal to a wide audience.

The recovery suggests resilience in demand even amid economic uncertainty and periodic trade headwinds noted in industry commentary.

Premium devices saw strong demand, but more accessible AI-powered options also attracted buyers in midrange segments, pushing the overall market higher.

Premium phones drive upgrades

Apple’s iPhone 17 saw very strong preorders in key markets such as China, and Samsung’s Galaxy Z Fold7 and Z Flip7 posted higher preorder volumes than their previous generations, helping drive growth in the foldable category.

The popularity of premium models demonstrates that consumers value innovation and new features. Foldables and high-performance devices continue to capture attention, giving OEMs a chance to increase revenue and strengthen their brand in the high-end market.

AI features fuel midrange growth

Affordable smartphones with AI enhancements also drove strong upgrades. Vivo’s midrange devices offered AI-powered imaging, while Transsion continued to expand affordable models across North and East Africa, targeting cost-conscious buyers in those markets.

By integrating AI into midrange phones, OEMs make advanced features accessible to wider audiences. This strategy not only boosts shipments but also strengthens market presence in regions where premium devices are less attainable.

Samsung keeps market lead

Samsung shipped 61.4 million units in 3Q25, capturing 19.0 percent market share. This represents a 6.3 percent increase from the same quarter last year, confirming the company’s continued dominance in global smartphone sales.

Strong performance reflects successful product launches and foldable innovation. Samsung’s strategy of combining flagship and flexible devices ensures it stays competitive across both premium and growing midrange segments.

Apple posts robust growth

Apple shipped 58.6 million units in the quarter, holding 18.2 percent market share, a 2.9 percent increase year-over-year. The iPhone 17 lineup attracted strong pre-orders, contributing to Apple’s best results ever in a July quarter.

The combination of device innovation and customer loyalty allowed Apple to maintain steady growth. Aggressive trade-in programs and financing options further encouraged upgrades, keeping the brand competitive even amid economic uncertainty.

Xiaomi strengthens global reach

Xiaomi shipped 43.5 million units, with 13.5 percent market share, up 1.8 percent from last year. The company focused on its Redmi Note and Poco series to consolidate growth in Europe and Latin America.

By targeting multiple regions with affordable and feature-rich devices, Xiaomi strengthened its market presence. Strategic marketing and localized campaigns helped attract consumers seeking value without compromising on technology.

Transsion expands African markets

Transsion shipped 29.2 million units, gaining 9.0 percent market share, a 13.6 percent increase year-over-year. The company’s strong distribution networks and competitive sub-200-dollar smartphones drove rapid growth across North and East Africa.

Transsion’s approach shows how targeting underserved regions with affordable technology can significantly increase shipments. Expanding distribution and offering AI-enabled features at low cost helped build brand recognition in these markets.

Vivo regains emerging market share

Vivo shipped 28.8 million units, capturing 8.9 percent market share, up 6.9 percent from last year. The brand strengthened its position in emerging markets with refreshed midrange devices featuring AI-powered imaging.

Midrange AI integration helped Vivo appeal to consumers seeking advanced features at affordable prices. Aggressive online promotions and device refreshes supported its recovery and boosted visibility across key markets.

Other brands face slight decline

Collectively, other smartphone vendors shipped 101.2 million units, representing 31.4 percent market share, down 3.2 percent year-over-year. Competition from leading brands with AI-enabled devices contributed to this decline.

This trend highlights the challenge smaller brands face against innovation-driven leaders. Without AI features or aggressive marketing, it becomes harder to retain share in an increasingly competitive global market.

Form factors influence buying trends

Consumers are increasingly drawn to innovative form factors such as foldables, dual-screen devices, and sleeker designs. These new layouts make upgrading more appealing, particularly in premium segments dominated by Apple and Samsung.

Form factor innovation drives market differentiation. OEMs that successfully introduce unique designs can command attention and foster consumer excitement, encouraging more frequent upgrades and higher adoption rates.

Financing eases upgrade decisions

OEMs have combined trade-in programs, installment plans, and promotional financing to remove purchase friction. Consumers can upgrade without significant upfront costs, which encourages adoption of new devices.

This strategy makes high-end and AI-enabled devices accessible to more buyers. Reducing financial barriers supports stronger quarterly shipments and reinforces loyalty among consumers ready to adopt the latest technology.

AI-driven imaging boosts appeal

AI-powered imaging features in midrange and premium devices have become a major selling point. Brands like Vivo and Xiaomi leveraged AI-enhanced cameras to differentiate products and attract tech-savvy buyers.

Consumers increasingly value smart photography tools that improve picture quality automatically. Integrating AI this way increases perceived device value and influences buying decisions, especially for social media and content creation users.

IDC predicts strong year end

IDC expects smartphone momentum to continue through the final quarter of 2025. Strong demand for AI-enabled devices and aggressive pricing promotions are likely to drive growth, building on solid 3Q25 results.

Continued innovation and competitive portfolios from leading OEMs suggest a strong finish to the year. The market is expected to maintain resilience, with both premium and midrange devices contributing to overall shipment growth.

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Market outlook

The global smartphone market is recovering steadily, supported by innovative form factors, AI-enhanced devices, and flexible financing. Premium and midrange segments both contributed to a 2.6 percent year-over-year shipment increase.

Consumers continue to value devices that combine performance, design, and AI features. Market leaders who innovate and remove purchase friction are best positioned for strong year-end results and ongoing growth.

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This slideshow was made with AI assistance and human editing.