Postpaid smartphone sales declined slightly in April 2025, down about 2% year over year. After a solid Q1 rebound driven by promotional offers and pre-tariff anxiety, April brought a softer performance as consumers once again delayed upgrades amid ongoing economic uncertainty. Samsung remains behind last year’s momentum, with the Galaxy S25 continuing to underperform compared to the excitement the S24 launch generated. Despite its heavy marketing push on AI features, this has failed to translateinto the same level of upgrade activity as last year.
Prepaid smartphone sales registered a modest 2% year-over-year growth in April, offering a glimmer of recovery. This modest increase can be attributed to promotional initiatives targeting consumers’ tax rebates. The prepaid segment experienced significant volume growth, primarily driven by Apple, which now holds a 40% share of the prepaid installed base of smartphones. Apple enthusiasts on prepaid accounts typically opt for older generation models, many of which are refurbished. Notably, Apple’s recently released affordable model, the iPhone 16e, achieved strong success, ranking as the sixth top-selling phone in April. However, its pricing remains prohibitive for most prepaid users. Incidentally, Motorola, which dominates the sub-$200 smartphone market, experienced another strong month, driven by prepaid activations.
With tariff concerns still looming and smartphone ages at record highs, Q2 remains a strong opportunity for carriers to stimulate upgrades through competitive promotions and subsidies, especially if economic anxiety persists.