Global smartphone shipments decline by 6% YoY in Q1’26

Global smartphone shipments declined 6% year-on-year in the first quarter of 2026, underscoring continued pressure on the device market as the chip shortage worsens.

According to the latest data from Counterpoint Research, the market has been largely impacted by DRAM and NAND memory components, driven by memory manufacturers’ shift to using their limited resources to produce chips for AI systems. 

Also, the ongoing Middle East tensions made original equipment manufacturers (OEMs) adopt cautious strategies in production volumes and pricing. This includes options for product delays and fewer launches, while customers also held back on discretionary purchases amid the war.

“At the same time, some OEMs frontloaded shipments in anticipation of component price hikes and logistics cost escalation, offsetting a greater drop in shipments,” the report added. 

While reacting to the report, Senior Analyst at Counterpoint Research, Shilpi Jain, noted that the 6% YoY drop is majorly driven by memory producers’ shift to prioritise AI data centres over consumer electronics. She noted that the effect made OEMs pass increased costs on to customers.

Another effect of the ongoing pressures is the increase in demand for refurbished devices. Shilpi pointed out that this has reduced shipment volume as consumers sought alternatives amid shortages in originals and price hikes.

“The shortage of memory chips and rising costs have impacted the price-sensitive segments the most, such as entry and mid-range devices, which are most exposed to such demand and supply pressures,” she added. 

Industry players earlier projected that the smartphone market would witness a price rise due to a drop in production. However, the demand for refurbished devices is expected to rise as customers react to market prices.

Also Read: An expected smartphone price hike will slow down 5G adoption in Nigeria.

Apple leads smartphone shipments

In the top five brands leading the global smartphone shipments, all but Apple witnessed a drop in YoY shipments during the quarter. 

Apple maintained its market lead with a 5% surge in smartphone shipments, attributed to the continued demand for the iPhone 17. This aligns with earlier forecasts predicting a resilient 2026 for Apple. 

Apple’s sustained market edge is also attributed to its strong supply chain capacity and premium market positioning. With a 21% market share, the brand witnessed stronger growth in key Asia-Pacific markets, such as China, India, and Japan. 

Meanwhile, the other four smartphone manufacturers in the top five witnessed a drop in YoY growth.

Samsung’s shipments declined by 6% YoY during the quarter and holds a 20% market share. The drop is attributed to market forces and the delay in its S26 series launch. 

Xiaomi dropped the highest among the top five brands at 19% YoY. But the producer still stayed third with 12% share. OPPO and vivo occupied the fourth and fifth spots in the market in Q1 2026 with 11% and 8% shares, respectively. However, they declined by 4% and 2%, respectively. 

Shilpi acknowledged the uneven development in the global smartphone market.

“While premium device makers like Apple remained relatively resilient to these pressures, volume-driven Chinese brands experienced sharper declines, especially in price-sensitive regions, contributing to the overall drop in global shipments,” she said.

According to the report, the outlook for 2026 remains weak, projecting that the chip shortage might last until late 2027.