Apple edges past Samsung to remain top smartphone vendor

The global smartphone market expanded in Q4 2025 as leading vendors drove growth across major regions despite rising component costs beginning to pressure parts of the industry, according to new research by Omdia.

Omdia said the global smartphone market grew by 4 per cent year on year in the fourth quarter of 2025, supported by seasonal demand and improved inventory discipline.

The research showed that growth was concentrated among leading vendors, including Apple and Samsung, across key regions worldwide.

Apple led the smartphone market in Q4 2025 with a 25 per cent market share, delivering what Omdia described as a record fourth quarter driven by strong demand for the iPhone 17 series.

Apple also ranked as the world’s largest smartphone vendor for the third consecutive year, finishing marginally ahead of Samsung.

Samsung followed in second place in Q4 2025 with an 18 per cent market share, supported by strong momentum in the sub-$300 segment.

Omdia said Samsung’s performance was driven in particular by demand for the Galaxy A17 4G and 5G models.

Xiaomi retained third place in both the fourth quarter and the full year 2025, even as its market share declined to 11 per cent in Q4 amid volume challenges in some of its key markets.

vivo captured an 8 per cent share in Q4 2025, delivering another strong quarter that was predominantly driven by its leadership position in India.

OPPO re-entered the global top five in the fourth quarter as it returned to growth, marking what Omdia described as a positive turnaround.

The research linked OPPO’s improved performance to its preparations for the integration of realme into its business from January 2026.

For the full year 2025, global smartphone shipments grew by 2 per cent year on year to 1.25 billion units.

Omdia said this reflected a stable but uneven recovery year, with a weaker first half followed by a stronger second half.

The second half of 2025 was defined by booming emerging economies and a positive reception for flagship smartphone launches.

However, the research warned that rising memory costs and shortages had begun to impact the market and constrain broader volume upside in Q4 2025.

Omdia added that mounting cost pressures toward the end of the year point to a stronger focus on pricing discipline, profitability and operational efficiency as the industry moves into 2026.

“Apple recorded its highest-ever fourth-quarter shipment volumes in 4Q25,” said Sanyam Chaurasia, principal analyst at Omdia.

“The performance was driven by solid demand for the iPhone 17 series alongside continued traction from older-generation models during the holiday season,” he said.

“The base iPhone 17 exceeded expectations following storage upgrades at unchanged pricing, while Pro models gained momentum as Apple ramped up production through the quarter,” Chaurasia said.

“Meanwhile, the iPhone Air acted as a portfolio showcase, with its slim form factor enhancing retail marketing and reinforcing the premium appeal of the Pro lineup,” he said.

“DRAM supply tightness has added considerable supply-side pressures to the smartphone industry, and is expected to be a key defining factor in 2026,” said Runar Bjørhovde, senior analyst at Omdia.

“Amid restricted DRAM supply of both LPDDR4 and LPDDR5, the battle to secure supply and limit cost increases is intense amongst all vendors,” he said.

“All vendors are utilising mitigating tactics, for example, by emphasising long-term partnerships, utilising scale to secure capacity, and focusing on their supplier base,” Bjørhovde said.

“The situation is particularly critical for vendors with heavier exposure to entry-level smartphones, which are highly price elastic and where memory and storage costs make up a higher share of the bill-of-materials,” he added.

“Rising cost pressures are reshaping how smartphone vendors approach 2026,” said Sanyam Chaurasia, principal analyst at Omdia.

“Higher semiconductor costs, alongside a slowing refresh cycle, are expected to weigh on shipment momentum,” he said.

“In response, vendors are tightening configurations, aligning launch strategies closer with component availability and using channel-led levers such as services, trade-ins and ecosystem bundling to support higher price points,” Chaurasia said.

“The push toward greater scale and supply-side leverage is already becoming evident, exemplified by realme moving under OPPO’s umbrella, reflecting early signs of consolidation as vendors seek greater scale to manage rising costs to maintain competitiveness in the decade’s second half,” he added.