Amid memory shortages and war, Q1 2026 smartphone shipments fell 6%, with Apple resilient, Samsung pressured, and Chinese brands facing sharper declines worldwide.
The global smartphone market contracted by 6 per cent year-on-year (YoY) in the first quarter of 2026, according to estimates from Counterpoint Research. The decline was attributed to shortages of DRAM and NAND memory components, rising costs, and subdued consumer demand influenced by geopolitical tensions in the Middle East.
Analysts noted that memory suppliers prioritised AI data centres over consumer electronics, leaving smartphone makers with compressed margins.
Among the market players, Apple led the market for the first time in Q1, securing a 21 per cent share and recording 5 per cent growth. Strong demand for the iPhone 17 series, trade-in programmes, and ecosystem loyalty helped the brand withstand supply pressures.
Samsung followed with a 20 per cent share, though shipments fell 6 per cent due to weaker mass-market demand and delays in the S26 series launch. Despite this, the premium Ultra variant gained traction.
Xiaomi retained third place with 12 per cent share but saw the sharpest decline at 19 per cent, reflecting its exposure to price-sensitive segments. OPPO and vivo captured the fourth and fifth spots with 11 per cent and 8 per cent shares, respectively, each showing mixed regional performance. Beyond the top five, Google and Nothing recorded notable growth of 14 per cent and 25 per cent, respectively.
The outlook remains weak, with shortages expected to persist until late 2027. Brands are likely to prioritise value over volume, streamline portfolios, and expand services to offset margin pressures.
Shilpi Jain, Senior Analyst at Counterpoint, said, “This decline in shipments is primarily driven by memory players prioritising AI data centres over consumer electronics, leaving OEMs with compressed margins and forcing them to pass increased Bills of Material costs directly to the consumer.”
She added that higher energy prices, logistics costs, and economic uncertainty further dampened demand, particularly in entry-level and mid-range devices.
