Global smartphone shipments decreased 4.1% year-over-year (YoY) to 289.7 million units in the first quarter of 2026 due to acute memory supply constraints. According to an IDC report, this is the first decline since mid 2023, breaking a 10-quarter streak of growth. The shortage in and rising costs of spare parts have forced smartphone makers increase the price of devices in the country. Also, rising component, energy and logistic costs due to the war in West Asia have further pressured the global smartphone industry.
Cost factors
According to Nabila Popal, a senior research director for worldwide consumer devices at IDC, the smartphone market has entered one of its most challenging periods, driven by acute memory supply constraints that are directly impacting both shipments and demand. Moreover, limited memory availability is forcing shipment reductions, while sharply higher memory prices are pushing up bill of materials cost and forcing price hikes by many top brands.
According to her, prices have risen in several emerging markets by 40-50%, significantly weighing on demand in price sensitive regions. Original equipment manufacturers are responding with tighter cost controls, reduced marketing and channel support—but such measures also limit growth. “This calendar year represents a critical inflection point for vendors to reinvent themselves as rising component, energy, and logistics costs due to the recent war in the Middle East compound downside risks on the market outlook and pressure global smartphone demand,” she said.
Top five in first quarter 2026
Amid the current market challenges, Samsung and Apple were the only two companies in the global top five to register annual growth. Their strong focus on premium devices and better leverage with memory suppliers has positioned them to manage this crisis and gain market share.
Samsung
Samsung reclaimed the top position in Q1 2026, primarily due to strong demand for the new Galaxy S26 Ultra. This led to a 3.6% YoY increase in shipments compared to the previous year, despite the later launch. The Ultra’s performance was supported by its consistent pricing compared to its predecessor. Additionally, the earlier release of the mid-range A-Series helped fill volume gaps from the S26’s later arrival and drive growth.
Apple
Apple secured second place, driven by the strong performance of the iPhone 17 series, which saw significant growth in China of over 30%. This led to a 3.3% year-over-year increase in global sales for Q1. Although demand remains strong, supply disruptions and reduced channel support in some key markets have limited growth.
Xiaomi
Xiaomi came in third for the quarter, maintaining its position despite the steepest decline among the top five players, as it strategically reduced shipments of older models to avoid large-scale price hikes.
Oppo
OPPO placed fourth as it integrated with Realme, with stronger performance in China than international markets helping offset a larger global decline.
Vivo
Vivo achieved the fifth spot, closing its gap with OPPO on the global stage, driven by positive performance in China—its largest market—and maintaining a leadership position in India.
Outside the Top 5, companies like Honor, Lenovo (Motorola) and Huawei also saw positive growth, with Honor recording the highest growth among the Top 10 at 24% YoY, as it shifted focus to overseas expansion.