LONDON—The global smartphone market experienced a 3% year-on-year growth in the third quarter of 2025, marking a significant rebound driven by major product launches, according to the latest research from Omdia. This resurgence was fueled by robust replacement demand and strategic inventory preparations by vendors ahead of an anticipated busy fourth quarter. Notably, Apple reported its strongest third-quarter performance ever, with iPhone shipments increasing by 4%, capturing an 18% market share.
Samsung maintained its lead position for the third consecutive quarter, securing a 19% market share. This was attributed to the sustained popularity of its Galaxy A series and the introduction of its upgraded seventh-generation foldable phones. Meanwhile, Xiaomi held a steady 14% market share, and TRANSSION and vivo each accounted for 9%, completing the top five vendors for the quarter.
Market Dynamics and Consumer Trends
The announcement comes as vendors stocked up in anticipation of a strong holiday season, reflecting a recovery in consumer demand to both upgrade and replace smartphones. Le Xuan Chiew, Research Manager at Omdia, highlighted the positive reception to major industry launch events, noting that vendors have effectively balanced their focus between hardware and software innovations.
“Recovering consumer demand to both upgrade and replace smartphones is boosting the market following a disruptive start to the year, as reflected by all of the top five vendors growing compared to 3Q24,” said Chiew.
This quarter’s hardware highlights included foldables, slim phones, bold colors, and back-cover displays, which have captivated consumer interest. Several vendors have increased production targets as initial demand exceeded expectations, signaling a robust market recovery.
Apple’s Strategic Success
Apple’s standout performance was largely driven by the iPhone 17 series, which exceeded launch expectations with upgraded storage options at unchanged pricing. The redesigned iPhone 17 Pro and Pro Max models continue to attract global consumers, while the iPhone Air, despite modest shipments, has proven effective in marketing and serves as a technical testbed for future innovations.
“Returning demand also enforces the importance of effective portfolio segmentation, where the iPhone 17 series has been a clear stand-out,” Chiew added.
Many vendors utilized the quieter first half of 2025 to calibrate inventories and streamline operations, setting the stage for a resurgence in consumer demand. TRANSSION, in particular, achieved its highest third-quarter volume ever, supported by prudent inventory management and recovering demand in regions like the Middle East and Africa.
Challenges and Opportunities Ahead
Despite the positive growth, economic uncertainties continue to influence vendor strategies. Balancing volume scale, profitability, and revenue targets remains a delicate task amid looming headwinds. According to Runar Bjørhovde, Senior Analyst at Omdia, competitive pressures are intense, with many vendors facing significant profitability strains due to rising bill-of-materials costs.
“The reality is that neither competition nor BoM costs will see short-term relief, making it essential for vendors to capture wider opportunities to grow revenues and differentiate themselves in the market,” said Bjørhovde.
To navigate these challenges, vendors are focusing on subscription services, accessories, bundles, and ecosystem upsells to strengthen consumer propositions. In emerging markets, where entry-level devices dominate, offering financing options can help avoid price wars and make operational models more sustainable.
Looking Forward
The move represents a critical juncture for the smartphone industry as it seeks to capitalize on renewed consumer interest while navigating economic challenges. As vendors continue to innovate and adapt, their ability to identify and leverage clearly defined opportunities will be key to sustaining growth in the competitive landscape.
Omdia, part of Informa TechTarget, Inc., provides deep insights into tech markets, empowering organizations to make informed growth decisions. For further details, view the full release on Business Wire.
