IDC released data on Monday revealing that the growth in global smartphone shipments decelerated in the second quarter of 2025, registering a mere 1% year-on-year increase to reach 295.2 million units. Economic uncertainty fueled by US tariffs, particularly on consumer spending for lower-end devices, has led to a significant cutback in purchases. This has weakened overall market demand, particularly in the budget segment. To counter this trend, smartphone manufacturers are integrating AI technology into cost-effective devices in an effort to elevate price points. Despite these challenges, IDC remains optimistic about the market's prospects, emphasizing that continuous innovation in new models and AI integration are propelling market growth. In China, neither the 618 e-commerce festival nor national subsidy policies succeeded in boosting shipments, as manufacturers focused primarily on clearing existing inventory.