The global smartphone market posted a modest but meaningful rebound in the first quarter of 2025, with revenues growing 3% year-on-year (YoY). According to Counterpoint Research, this positive momentum was largely driven by strong performances from Apple and vivo, the only two brands among the top five to record revenue growth. Brands outside the top five—particularly Huawei and Motorola—also made significant contributions, marking a shift in consumer preference and brand dynamics.
Premium Devices Drive Average Selling Price to Record High
A notable trend in Q1 2025 was the rise in the average selling price (ASP) of smartphones, which climbed to a record $364, up 1% from the previous year. This reflects the continued global trend toward premiumization, as consumers increasingly seek out smartphones with advanced features, including artificial intelligence (AI) capabilities and more powerful hardware. This shift has helped offset volume declines for some manufacturers and boosted profitability in key segments.
Apple Leads the Pack with iPhone 16e
Apple emerged as the top growth performer, with a 12% YoY increase in shipments. A key driver of this growth was the launch of the iPhone 16e, which offered a lower ASP compared to previous models but helped Apple tap into emerging markets more effectively. Despite a 9% dip in ASP, Apple’s overall revenue remained strong, with significant traction in markets like India and Japan. The iPhone 16e’s strategic pricing proved successful in widening Apple’s reach while maintaining its premium brand appeal.
vivo Surges in India and China
vivo also delivered a strong performance, fueled by growth in both India and China. In India, vivo retained its lead in shipment volumes for the third consecutive quarter, thanks to the popularity of its sub-INR 15,000 models such as the Y29 5G and T4x. Meanwhile, in China, the brand captured 17% of the market, supported by a broad portfolio spanning various price tiers. This diversification helped vivo navigate a competitive landscape while continuing to gain consumer trust.
Samsung Stays on Top in Shipments but Faces ASP Pressure
Samsung maintained its lead in global smartphone shipments. However, the company experienced a 7% drop in ASP due to an increased share of budget-friendly models in its lineup. While this affected revenue growth, Samsung’s broad product range continued to appeal to diverse consumer groups worldwide, allowing it to retain market leadership in volume.
Huawei, Motorola Gain Ground
Outside the top five, Huawei and Motorola posted impressive double-digit revenue growth. Huawei’s resurgence in China was powered by government incentives and a revitalized product strategy. Motorola, on the other hand, saw gains in global markets through a focus on high-value devices that combine premium features with affordability—particularly appealing in price-sensitive markets.
Outlook: Opportunities Amid Uncertainty
Looking ahead, the smartphone industry remains cautiously optimistic. While Q1 2025 showed encouraging signs, economic uncertainties, fluctuating demand, and potential trade policies could impact performance in the coming quarters. Still, the industry’s focus on innovation and premium experiences is expected to sustain consumer interest.
In summary, Q1 2025 highlighted the resilience of the smartphone market, with Apple and vivo leading a recovery driven by smart pricing and feature-rich devices. As global competition intensifies, the next frontier will likely revolve around deeper AI integration, ecosystem expansion, and localized innovation.
