The global smartphone industry is experiencing its first shipment decline in six quarters, with a 1 percent drop attributed to weak consumer demand. However, IDC reported a slight 1 percent increase in shipments, impacted by economic challenges like inflation and tariffs. IDC lowered its smartphone shipment forecast for 2025 to around 1.24 billion units. Tariffs have led many vendors to adjust production targets to avoid excess inventory, particularly affecting major companies like Apple and Samsung in the U.S. market, where high inventory levels have been maintained.
In the face of ongoing political challenges, the impact of war, and the complexities posed by tariffs, the 1 percent growth in the smartphone market stands as a critical indicator that it is poised to return to growth.
Many vendors had hoped to see a rise in demand for the second quarter, but were instead forced to cut production targets in order to avoid a build-up of excess inventory.
America was the exception here, where the constantly shifting tariff policies and timelines from the Trump administration led vendors to maintain high inventory levels and frontload devices throughout the quarter.
IDC had lowered its forecast for smartphone shipments in 2025 amid tariff and trade uncertainty, estimating that worldwide shipments are likely to be limited to 1.24 billion units.
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