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July 14 - The growth of global smartphone shipments slowed in the second quarter as buyers, wary of U.S. tariff-driven economic uncertainty, curbed spending, especially on low-end devices, data from research firm International Data Corp showed on Monday.

Shipments increased by 1% in the April-June quarter to 295.2 million units, according to the preliminary data, slower than the 1.5% growth recorded in the previous quarter.

WHY IT'S IMPORTANT

Demand in China declined in the second quarter, as subsidies failed to stimulate demand, with Apple AAPL.O seeing a 1% drop.

Overall demand has tapered as consumers deprioritize spending on smartphones, especially in low-end segments.

Sellers have continued to push higher price points to make up for the slowdown in unit shipments by offering AI in more affordable devices, IDC said.

KEY QUOTES

"In the face of ongoing political challenges, the impact of war, and the complexities posed by tariffs, the 1% growth in the smartphone market stands as a critical indicator that the market is poised to return to growth," said Anthony Scarsella, research director for Client Devices at IDC.

"Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest. As a result, low-end Android is witnessing a crunch weighing down overall market growth," said Nabila Popal, senior research director for Worldwide Client Devices.

BY THE NUMBERS

Samsung 005930.KS saw the highest growth, with shipments increasing 7.9% to 58 million units in the quarter.

Apple roughly maintained its market share as the second-top smartphone seller, with a growth of 1.5% in shipments.

CONTEXT

IDC had in May slashed its 2025 global smartphone shipment growth forecast to 0.6% from 2.3%, citing tariff-driven economic uncertainty and a pullback in consumer spending.

GRAPHIC

(Reporting by Juby Babu in Mexico City)

((Juby.Babu@thomsonreuters.com;))