Samsung Slips, Apple Surges In A Shrinking US Smartphone Market

The economy isn’t doing so hot these days. Plus, smartphone tech has peaked. Combine these two factors, and you know what we’re looking at? A dip in the US smartphone market in Q1 2025. Specifically, we’re talking about a drop of about 2%, and it seems that the premium smartphone market is to blame.

US smartphone market takes a hit in Q1

This is based on the latest data by Counterpoint Research. It found that in Q1 2025, the US smartphone market declined 2% year-over-year, but zooming in on the premium market, which consists of phones $800 and above, we’re looking at a 4% year-over-year decline. Interestingly enough, not all companies are affected by this.

In fact, according to Counterpoint’s data, Apple benefited from this. For Q1 2025, Apple’s sell-out share at the Big 3 carriers is sitting at 72%. This is an increase of 2% from the previous year. Android actually saw a decline by 2%, dropping to 28%, a decrease in sell-out share of 30% in 2024. Counterpoint attributes Apple’s increase in sell-out share to its brand new iPhone 16e. This aligns with what we had heard previously, where despite many questioning the need and price point of the iPhone 16e, it turned out to be a hit for Apple. It also took advantage of the weakness in demand for Samsung’s latest flagship phones.

A decline in demand for premium phones

According to Counterpoint’s Senior Research Analyst Maurice Klaehne, “Carriers have attempted to offset market weakness by prioritizing strong device promotions. We have seen some of the largest promotional offers ever for smartphones in Q1 2025. Verizon and AT&T both had promo offers to get the Samsung Galaxy S25 Ultra for free in Q1, something which had never before happened with a Galaxy Ultra device. This shows an increased urgency by carriers to draw customers to premium devices and newer service plans.”

It’s honestly not surprising to see the demand for premium devices fall. The prices of phones have been rising to ridiculous levels, but without the tech or features to justify it. Plus, with Trump’s tariffs expected to kick in soon and with the economy the way that it is, consumers pulling back on spending is to be expected.