Global smartphone shipments declined 6% year over year in the first quarter of 2026, as shortages of DRAM and NAND memory components disrupted supply chains and pushed up production costs, according to preliminary data from Counterpoint Research’s Market Monitor.
Apple (NASDAQ:AAPL) claimed the leading position in the global smartphone market for the first time in a first quarter, securing a 21% share with 5% growth compared to the same period last year. Strong demand for the iPhone 17 lineup, along with aggressive trade-in offers and effective supply chain execution, supported its performance. Growth was particularly strong in China, India, and Japan.
Samsung saw shipments fall 6% during the quarter, giving it a 20% market share, as the company postponed the launch of its Galaxy S26 and faced softer demand in the entry-level segment. Despite this, early demand for the S26 range remained solid, with the Ultra model attracting the most interest. Samsung also reshaped its product mix, cutting back on lower-end devices and increasing starting price points.
Xiaomi recorded a 13% drop in shipments but retained third place with a 13% market share. The company was impacted by its exposure to the more price-sensitive entry-level segment, where rising memory costs had the greatest effect. However, its Xiaomi 17 series performed well within China’s premium market.
OPPO and vivo ranked fourth and fifth, holding 11% and 8% market share respectively. Vivo’s shipments declined 2%, though it maintained its leading position in India thanks to strong mid-range offerings. OPPO, meanwhile, benefited from solid demand for its A5 series in the entry-level category.
Google (NASDAQ:GOOG) and Nothing posted growth of 14% and 25% respectively, supported by broader distribution and differentiated product strategies. Google’s Pixel smartphones gained traction in developed markets through AI features and advanced photography capabilities, while Nothing’s Phone (4a) received a strong reception from consumers.
“This decline in shipments is primarily driven by memory players prioritizing AI data centers over consumer electronics, leaving OEMs with compressed margins and forcing them to pass increased Bills of Material costs directly to the consumer,” said Senior Analyst Shilpi Jain at Counterpoint Research.
Higher energy prices, increased logistics costs, and geopolitical tensions in the Middle East continued to weigh on consumer demand, while also boosting interest in refurbished devices. The shortage of memory components and rising costs hit lower-end segments hardest, while premium brands proved more resilient.
Looking ahead, the outlook for 2026 remains challenging, with memory supply constraints expected to persist until late 2027. Manufacturers are likely to shift focus toward profitability over volume, scale back low-margin models, and increasingly rely on software and services to drive growth.