What Tariffs? Smartphone Market Grows 1% as More Devices Incorporate AI

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

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 the 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,” said Francisco Jeronimo, vice president for client devices at IDC. “These new products introduce AI-enabled features to mid-range devices, which has 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. 

A recent CNET survey found that just 11% of people upgrade their phone for AI features. But 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.