What Tariffs? Smartphone Market Grows 1% as More Phones Fold In AI

It looks like curiosity about AI may be boosting smartphone sales. According to new data released from the International Data Corporation, smartphone shipment increased 1% year over year in the second quarter of 2025 despite tariff volatility and worldwide economic instability. 

Much of the increase in sales is attributed to midrange devices like Samsung's Galaxy A36 and other smartphones that have started incorporating AI.

The report blamed a drop in demand for lower-end devices, including those built around Android OS, for weighing down the smartphone market. However, devices that incorporate AI-enabled features have sparked a curiosity that's lured customers back -- for the right price. 

"Samsung was able to consolidate its market leadership and outperform the overall market, achieving strong growth in the quarter driven by the sales of its new Galaxy A36 and A56 products," Francisco Jeronimo, vice president for client devices at IDC, said in a statement. "These new products introduce AI-enabled features to midrange devices, which have been effectively used in retail stores to drive sales." 

Starting at $400, the Galaxy A36 potentially offers a more affordable entry into AI for many people, including AI-powered photo editing tools and Google's Circle to Search. 

Overall, says CNET mobile expert Mike Sorrentino, Samsung's Galaxy A line, especially its even-cheaper $200 model, has been successful at eating into a US phone market that's otherwise dominated by Apple. "Samsung, as well as its rival Motorola with its Moto G series, have put a particular focus on getting the features people are looking for into lower-cost devices," Sorrentino said. "Those devices are often further subsidized by wireless carriers, making them particularly accessible, albeit with a two- or three-year commitment to a carrier." 

A recent CNET survey found that just 11% of people upgrade their phones for AI features. However, the survey also found that price is the biggest driver (62%), meaning a midrange phone with new features could prove to be alluring enough to make the leap.