• US smartphone consumer sales declined 2% YoY in Q1 2025 due to weakness in the premium segment.
• Sales in the premium segment ($800 and above) fell 4% YoY primarily due to a decline in demand for Samsung flagships.
• Apple’s share at the Big 3 carriers increased to 72% in Q1 2025 from 70% in Q1 2024.
• Some carriers reported an increase in demand towards the end of Q1 as consumers moved to purchase devices before possible price volatility.

Fort Collins, Beijing, Buenos Aires, Hong Kong, London, New Delhi, Seoul, Taipei, Tokyo – May 6, 2025

US smartphone consumer sales (sell-out) declined 2% YoY in Q1 2025, according to Counterpoint’s Monthly US Channel Share Smartphone Tracker. This decline was primarily due to weakening sales in the premium segment ($800 and above) as Samsung’s flagship sales dropped YoY, with the Galaxy S series seeing lower demand than it did a year ago. Apple’s flagship sales fell YoY as well, but this was offset by sales of the iPhone 16e. The iPhone 16e launch, combined with weakness from Samsung flagships, allowed Apple to increase its share within US postpaid channels. Apple’s share of sell-out at the Big 3 carriers increased to 72% in Q1 2025 from 70% in Q1 2024.

In addition to the premium segment decline, the sub-$300 segment also declined by 5% YoY. Despite this weakness, Motorola’s sell-out increased by 13% YoY as it capitalized on a lack of device refreshes from competing OEMs like HMD, and smaller brands scaling down operations in the US market. Motorola launched its 2025 G-series device lineup earlier than it did in 2024, which provided an earlier bump to sales during tax season.

“Carriers have attempted to offset market weakness by prioritizing strong device promotions,” said Senior Research Analyst Maurice Klaehne, adding, “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.”

Total device sales by the Big 3 carriers stayed relatively flat YoY. While AT&T and T-Mobile’s smartphone sales increased YoY (5% and 2%, respectively), thanks to improved upgrade rates, Verizon’s declining upgrade rate in Q1 offset those gains (-6% YoY). Some carriers reported an increase in demand in late March and April due to the US government’s latest move to impose tariffs, as customers moved to purchase products before possible price increases.

With the current tariff situation failing to provide any clarity, uncertainty persists over how the US smartphone market will play out through the rest of 2025. In Q1, some OEMs began to build up device inventories within the US to hedge against possible tariff outcomes.

Research Director Jeff Fieldhack said, “We have seen OEMs with high production rates in China, such as Apple, Motorola and TCL, ship an increased number of units to the US and build up inventories that could get them through summer without having to increase prices if current tariffs on China stand. For other OEMs like Samsung, whose production is centered outside China, there has been less of a build-up.”

Background

Counterpoint Research is a tech market research firm providing market data, industry thought leadership and consulting across the technology ecosystem. We advise a diverse range of clients spanning smartphone OEMs to chipmakers, channel players to big brands and Big Tech through our offices which serve the major innovation hubs, manufacturing clusters and commercial centers globally. Our analyst team engages with C-suite through to strategy, AR, MI, BI, product and marketing professionals in the delivery of our research and services.  Our key areas of coverage:  AI, Autos, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks & Infra, Semiconductors, Smartphones and Wearables.
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