U.S. smartphone sales declined two percent year-over-year in Q1 2025, driven largely by weakening demand in the premium segment, according to Counterpoint Research’s Monthly US Channel Share Tracker.
Premium device sales fell four percent YoY, primarily due to declining interest in Samsung’s flagship models, including the Galaxy S series. Although Apple’s flagship sales also dipped, the launch of the more affordable iPhone 16e helped offset the decline, pushing Apple’s share at the top three carriers (AT&T, Verizon, and T-Mobile) up to 72 percent, from 70 percent a year earlier.
Sales in the sub-$300 tier also saw a 5 percent YoY drop. However, Motorola bucked the trend, growing 13 percent YoY by launching its G-series lineup earlier than in 2024 and benefiting from reduced competition as smaller brands scaled back.
To counter market softness, carriers leaned into aggressive promotions — some of the most generous ever seen. Notably, Verizon and AT&T offered the Samsung Galaxy S25 Ultra for free, an unprecedented move aimed at boosting premium device adoption and upgrading customers to newer service plans.
Overall device sales at the Big 3 carriers remained steady. AT&T and T-Mobile saw YoY growth (five percent and two percent, respectively) thanks to better upgrade rates, while Verizon’s six percent decline in upgrades offset those gains.
Some late-quarter momentum was attributed to consumer efforts to buy ahead of anticipated price hikes following new U.S. tariff announcements in March.
