Tariffs Threaten To Tank Global Smartphone Sales

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Trump’s plan to introduce sweeping tariffs has been blocked by a US federal court. This is good news, right? But it’s not over yet. The Trump administration has filed for an appeal, meaning that this stay of execution might be temporary. This is why it’s not surprising that a recent IDC study suggests that global smartphone sales could take a hit, and tariffs might be to blame.

Global smartphone sales to take a dive

According to the IDC, smartphone shipments are expected to grow 0.6% year over year by 2025. This will culminate in a total of 1.24 billion units shipped. However, the research firm notes that this new figure of 0.6% was reduced from a predicted 2.3% in February 2025.

Anthony Scarsella, research director with IDC’s Worldwide Quarterly Mobile Phone Tracker says, “The US Market is forecast to grow 1.9% in 2025, but it was impacted from the ongoing US-China trade war as growth was pulled down from 3.3% due to increased uncertainty and tariff related price increases.”

He adds, “Further negative impact was prevented by the unique structure of the US smartphone market, where majority of devices are bought through carriers which help fuel demand by offering robust trade in deals and interest free financing programs. As a result, the forecasted 4% growth in average selling prices of smartphones will have less immediate impact on consumers, especially with many new premium devices launching in the second half of the year.”

Tariffs are causing uncertainty

It’s not surprising that the tariffs are causing uncertainty among consumers and could cause smartphone sales to drop. While Trump’s sweeping tariffs have been blocked, it’s hard to predict what he might do next. He could win his appeal or find other ways to implement taxes on imported goods into the United States.

Before the court’s ruling, companies such as Apple had been preparing for tariffs. Apple retail employees shared stories of customers flocking to stores to buy Apple products before the tariffs hit. Apple also flew in $2 billion worth of iPhones to stockpile its inventory in case the tariffs were implemented. If that were to happen, it would need to start paying more to bring in new products.