Samsung Electronics ceded the top spot to competitor Apple in smartphone sales rankings for the first quarter of this year. Typically, the first quarter is when Samsung Electronics releases new smartphone models, so the company shows strength; however, this year, analyses suggest that U.S. tariff policies and the release of Apple’s budget smartphone, the iPhone 16e, had an impact.
◇ U.S. tariffs and the iPhone 16e change the official ‘smartphone market share’
According to Counterpoint Research on the 16th, Samsung Electronics saw its smartphone sales volume decrease by 5% compared to the same period last year, recording an 18% market share. In contrast, Apple’s sales volume increased by 4% during this period, allowing it to rise to the top with a 19% market share. This is the first time Apple has held the number one smartphone sales market share position in the first quarter since tracking began in 2015.
Samsung Electronics unveils its premium smartphone line, the S series, every first quarter, while Apple launches its iPhone series in the third quarter. In the global smartphone market, Samsung Electronics typically demonstrates strength in the first quarter, coinciding with new product releases, while Apple has rebounded in the fourth quarter.
The background behind this change in ‘market dynamics’ after more than a decade is attributed to Apple’s responses to the tariff policies of the Trump administration since the beginning of this year. A market analyst who requested anonymity noted, “Smartphone sales vary depending on how much purchase benefits are offered in each market,” adding, “Apple has expanded its promotional efforts in Japan, India, and other locations, which is interpreted as a move to boost profitability before the effects of tariffs took hold.” The analyst further explained that the launch of a budget model after three years was also aimed at addressing poor sales of the iPhone 16 series and anticipated profitability decline due to tariff policies.
Apple launched its budget smartphone, the iPhone 16e, at the end of February. This is the fourth time Apple has released a budget smartphone since 2016, 2020, and 2022. Counterpoint Research stated, “Apple introduced the iPhone 16e at an unusual time and saw growth in Japan, India, the Middle East, Africa, and Southeast Asia,” and added, “Samsung Electronics was affected by the delayed launch of the Galaxy S25 series compared to the usual schedule.” The Galaxy S25 series was launched on February 7, slightly later than its predecessor, which launched on January 30, 2024.
◇ Apple’s ‘iPhone transport operation’… Samsung maintains ‘normal strategy’
The responses by Samsung Electronics and Apple to U.S. tariffs are also evident in smartphone shipments. According to market research firm IDC, Apple’s smartphone shipments in the first quarter of this year were recorded at 57.9 million units, a 10% surge compared to the same period last year (52.6 million units). Consequently, its market share increased from 17.5% to 19.0%.
During this period, Samsung Electronics shipped 60.6 million units, a 0.6% increase, recording a market share of 19.9%. While it maintained the number one position in terms of shipment market share, it is facing close competition from Apple.
It is known that nine out of ten iPhones are produced in China. The Trump administration set a tariff rate of 145% on China. In response, Apple has been increasing smartphone production not only in the U.S. but also in other regions since the beginning of this year to consistently boost its inventory. IDC analyzed, “The surge in supply is a strategy to alleviate cost increases and supply chain disruptions, leading to first-quarter shipments being inflated beyond estimates based on actual consumer demand.”
Since the announcement of the tariff policy, Apple has been implementing various methods to increase its inventory in the U.S. According to Indian customs data, Foxconn and Tata, major suppliers of Apple in India, exported approximately $2 billion (2.8548 trillion won) worth of iPhones to the U.S. during March. This constitutes the largest monthly total to date. It is reported that at least six cargo charter planes were deployed for the so-called ‘iPhone transport operation.’
In the securities industry, it is believed that the decline in market share due to sluggish sales of Samsung Electronics' Galaxy S25 series is not the case. Samsung Electronics announced its provisional performance on the 8th, stating that it achieved an operating profit of 6.6 trillion won in the first quarter of this year. It is estimated that there was an operating profit of around 4 trillion won from its smartphone business due to the strong sales of the Galaxy S25 series.