Apple hits highest ever third quarter as global smartphone market grows 3%

The global smartphone market has returned to growth, with overall shipments increasing by 3% year-on-year in the third quarter of 2025, according to new research from analyst firm Omdia.

This rebound was fuelled by strong replacement demand and several major product launches, confirming a positive shift following a disruptive start to the year.

The report highlighted an exceptional performance by Apple, which achieved its strongest third quarter in company history. Driven by robust early demand for the new iPhone $17$ series, Apple saw its shipments grow by $4\%$, securing an impressive $18\%$ market share for the quarter.

Research Manager Le Xuan Chiew noted that the base iPhone exceeded expectations, especially with its upgraded storage at an unchanged price, while the redesigned Pro and Pro Max models continue to attract consumers globally.

While Apple captured the strongest growth momentum, Samsung maintained its position as the market leader for the third consecutive quarter, holding a 19% market share. Samsung’s sustained strength was attributed to steady volume from its budget-friendly Galaxy A series and the launch of its upgraded $7$th-generation foldable devices.

The rest of the top five global vendors also demonstrated stability, with Xiaomi holding a $14\%$ share. TRANSSION was a particular standout, growing by double digits to its highest ever $3$Q volume, benefiting from recovering demand in the Middle East and Africa. vivo completed the top five, with both TRANSSION and vivo capturing $9\%$ share each.

Analyst commentary suggests the market recovery is being driven by consumers looking to upgrade or replace older devices. According to Le Xuan Chiew, vendors have strategically balanced hardware and software appeal, with foldables, slim designs, and bold colours capturing consumer attention.

The outlook remains cautiously optimistic. Senior Analyst Runar Bjørhovde noted that intense competitive pressure and rising bill-of-materials (BoM) costs – driven partly by the hyper-growth of AI and data centres competing for semiconductor capacity – are squeezing vendor profitability.

Bjørhovde stressed that success moving forward will depend on vendors differentiating themselves and capturing wider opportunities through subscription services, accessories and ecosystem upsells to maintain sustainable operational models.

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