iPhone 16e boosts Apple as US smartphone sales dip 2% in Q1 2025

The US smartphone market contracted 2% year-over-year in Q1 2025, according to Counterpoint Research, with not-so-healthy demand in both the premium and budget segments. Despite the overall decline, Apple managed to expand its share in postpaid channels, fueled by the launch of the iPhone 16e and flagging demand for Samsung’s Galaxy S25 series.

The premium segment, defined as devices priced above $800, took the hardest hit as both Apple and Samsung saw declines in their flagship sales. However, Apple’s broader lineup proved more resilient, with the iPhone 16e acting as a cushion. As a result, Apple’s share of Big 3 carrier sell-out climbed to 72% in Q1 2025, up from 70% a year ago.

“Carriers have attempted to offset market weakness by prioritising strong device promotions,” said Maurice Klaehne, Senior Research Analyst at Counterpoint. He pointed to unprecedented offers, including free Galaxy S25 Ultra promotions from Verizon and AT&T, marking the first time Samsung’s top-tier flagship has been offered at no cost.

In the sub-$300 segment, sales dropped 5% YoY. Yet Motorola defied the trend with a 13% YoY increase, thanks to early G-series launches and reduced competition from shrinking brands like HMD. The company strategically released new models ahead of tax season, capitalising on timely consumer demand.