Smartphone Shipments Rise Again: Foldables and Affordable AI Phones Lead a Quiet Comeback in 2025

The global smartphone market finally seems to be catching its breath. After months of slow recovery, shipments are back on the rise. According to new numbers from IDC, phone makers shipped 322.7 million smartphones in the third quarter of 2025, up 2.6% from the same time last year.

The uptick may not sound massive, but in a market this mature, it’s a clear sign that people are ready to upgrade again — helped along by more flexible trade-in options, better financing, and a wave of new phones that are smarter and more experimental than before.

Big Names, Big Numbers

Samsung and Apple continue to lead the pack. Samsung shipped 61.4 million units this quarter, growing 6.3% year over year and holding on to its 19% market share. Apple wasn’t far behind, moving 58.6 million iPhones and taking 18.2% of the market.

Both brands had strong launches this cycle. Apple’s iPhone 17 series saw record pre-orders, while Samsung’s new Galaxy Z Fold 7 and Z Flip 7 helped boost foldables into a more mainstream position. IDC says both companies hit their best July-quarter results ever, showing that even in uncertain economic times, the high-end segment isn’t slowing down.

Midrange Makers Are Catching Up

Outside the top two, a few familiar names quietly gained ground. Xiaomi, for instance, continued to grow in Europe and Latin America, leaning on the popularity of its Redmi Note and Poco lines. Transsion, which dominates in Africa, posted the biggest jump — 13.6% year over year — thanks to its sub-$200 lineup and strong regional distribution.

Vivo also showed signs of a comeback, up 6.9% from last year, fueled by refreshed midrange phones and AI-powered camera tricks that have been getting solid attention online.

AI Phones Are Changing the Upgrade Game

One of the biggest trends IDC highlights this quarter is the rise of AI-enabled smartphones. These aren’t just flagships anymore — even phones under $400 are now using AI for better camera processing, system optimization, and voice control.

That shift is pushing users who’ve held onto older devices to finally make the jump. Affordable AI phones are becoming the new “sweet spot” for upgrades, especially in regions like India, Southeast Asia, and Africa.

Foldables Are Finally Finding Their Place

Foldables have moved from being “cool tech demos” to actual buying options. Samsung’s Z Fold 7 and Z Flip 7 are leading the way, but the momentum has opened space for others like Honor, Vivo, and OPPO, which now have their own foldable models in the mix. IDC’s data shows that this segment is one of the fastest-growing contributors to overall premium shipments.

Looking Ahead

IDC expects this momentum to carry into the final months of 2025. More AI-powered phones, festive season promotions, and end-of-year discounts could keep the upgrade cycle going. As budgets loosen and financing gets easier, the next few quarters may continue this slow but steady recovery.

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