IDC: Global smartphone shipment growth slows in the second quarter, affected by tariff uncertainty
According to a report by International Data Corporation (IDC), global smartphone shipments grew slowly in the second quarter of 2023, increasing by only 1% to 295.2 million units, down from 1.5% in the previous quarter. The main reason is that consumers remain cautious about the economic uncertainty caused by U.S. tariffs, particularly affecting the demand for low-end devices. Although Samsung's shipments grew by 7.9%, Apple's shipments declined by 1%, and IDC has revised its global smartphone shipment growth forecast for 2025 from 2.3% to 0.6%
On July 14th, the research organization International Data Corporation (IDC) announced that global smartphone shipments grew at a slower pace in the second quarter, as consumers remained cautious about economic uncertainties triggered by U.S. tariffs, suppressing consumption, especially for low-end devices.
Preliminary data showed that global smartphone shipments grew by 1% from April to June, reaching 295.2 million units, a decrease from the previous quarter's growth of 1.5%.
In the second quarter, demand in the Chinese market declined, and subsidies failed to stimulate demand, with Apple (AAPL.O) experiencing a 1% drop in shipments.
Overall demand has decreased as consumers no longer prioritize smartphone purchases, particularly for low-end products.
IDC stated that manufacturers are striving for higher prices by offering artificial intelligence (AI) in more affordable models to compensate for the slowdown in shipments.
"Facing ongoing political challenges, the impacts of war, and the complexities brought by tariffs, the 1% growth in the smartphone market is a key indicator that the market is ready to resume growth," said Anthony Scarsella, IDC's Director of Client Device Research.
"Economic uncertainty often compresses demand in the low-end market, which is the most price-sensitive. Therefore, the pressure on low-end Android models has dragged down overall market growth," said Nabila Popal, IDC's Senior Research Director for Global Client Devices.
Samsung (005930.KS) led the growth, with shipments increasing by 7.9% in the second quarter, reaching 58 million units.
Apple managed to maintain its position as the second-largest smartphone vendor, with a shipment growth of 1.5%.
In May, IDC revised its global smartphone shipment growth forecast for 2025 from 2.3% to 0.6%, citing economic uncertainty caused by tariffs and a decline in consumer spending.
Chart: Samsung's second-quarter shipment growth of 8% solidifies its smartphone market share
