According to a recent report by Canalys, the US smartphone market experienced minimal growth in the second quarter of 2025, with a total shipment increase of just 1%. In contrast, Samsung achieved significant gains, while Apple faced a notable decline in shipments. Samsung’s performance saw the company close the market share gap with Apple, whose shipments fell by double digits.
Samsung’s success in the US smartphone market is evident as it shipped 8.3 million units in Q2 2025, marking a remarkable 38% increase year-over-year. This surge allowed Samsung to increase its market share from 23% to 31%. In contrast, Apple experienced an 11% drop in shipments, falling from 14.9 million units in Q2 2024 to 13.3 million units this year. Despite this decline, Apple maintained its position as the market leader with a 49% share of the US market.
The narrowing gap in market share between the two companies is significant. A year ago, Samsung’s share was 33%, which has now decreased to 18%. Runar Bjorhovde, Senior Analyst at Canalys, highlighted that the performance shift is attributed to vendors frontloading devices and maintaining high inventory levels amidst potential tariff risks later in the year. “Apple built up its inventories rapidly toward the end of Q1 and sought to maintain this level in Q2,” Bjorhovde noted.
Despite Samsung’s considerable growth, the overall market’s modest increase indicates a challenging economic environment. Bjorhovde remarked, “Even if smartphones remain exempted from tariffs, many other categories are impacted, which might greatly affect consumers’ spending patterns and keep smartphone demand modest in H2.”
India Surpasses China as Leading Manufacturing Hub
A notable trend emerging from Canalys’ report is the shift in smartphone manufacturing locations. For the first time, India has surpassed China to become the leading manufacturing hub for smartphones shipped to the United States. This shift is largely attributed to rising trade and tariff tensions that have led to a significant decline in the share of US smartphone shipments manufactured in China, plummeting from 61% in Q2 2024 to just 25% in Q2 2025.
In contrast, India’s contribution to US-bound smartphone shipments surged from 13% to 44%, reflecting an astounding 240% year-over-year growth. Sanyam Chaurasia, Principal Analyst at Canalys, explained that this transformation is primarily driven by Apple’s accelerated supply chain shift to India. “Apple has scaled up its production capacity in India over the last several years as part of its ‘China Plus One’ strategy,” Chaurasia stated, emphasizing the company’s commitment to diversifying its manufacturing base.
Vietnam also experienced growth as a smartphone manufacturing hub, accounting for 30% of total US-bound shipments, reflecting a 6% increase in its manufacturing capacity.
As the smartphone landscape continues to evolve, the pressures of global trade dynamics are reshaping where and how these devices are produced and delivered to consumers. The developments in Q2 2025 underscore the competitive nature of the market, with companies like Samsung capitalizing on opportunities while Apple navigates challenges in maintaining its leadership position.
