Samsung and Apple Lead Market Growth
Global smartphone shipments reached 298.5 million units in the first quarter of 2026, marking a 1% year-on-year increase, according to Omdia. The growth was driven by vendor-led front-loading, as companies like Samsung and Apple accelerated sales ahead of expected cost inflations.
Samsung maintained its position as the leading vendor, shipping 65.4 million units, an 8% increase from the previous year. This success was attributed to strong demand for the Galaxy S26 series and the entry-level A-series in emerging markets. The resilience of Samsung's portfolio across different price segments was a key factor.
Apple followed closely with 60.4 million units shipped, a 10% increase year-on-year. The iPhone 17 series, particularly the iPhone 17e, saw strong performance in European and Japanese markets, while the iPhone 17 Pro and Pro Max excelled in China, recording a 42% year-on-year growth in Mainland China.
Challenges in the Smartphone Industry
Despite the growth, the industry faces challenges. Persistent inflation has impacted consumer spending, extending replacement cycles and increasing selectivity in mid-to-premium segments. This has resulted in a significant gap between channel sell-in and consumer sell-out, expected to lead to corrections in the second quarter and the latter half of 2026.
Xiaomi experienced a 19% decline in shipments, primarily due to its focus on the sub-$200 segment, which is more susceptible to memory cost inflation. With more than half of Xiaomi's shipments in this price tier, the brand faced compressed margins and reduced volumes.
Meanwhile, OPPO, including realme and OnePlus, ranked fourth with 30.7 million units, down 6% year-on-year, followed by vivo in fifth place with 21.3 million units, down 7% year-on-year. Both vendors recorded single-digit declines consistent with softer Q1 sell-through, following accelerated entry-level channel fill in Q4 2025.
HONOR emerged as the fastest-growing vendor in the top 10, shipping 19.2 million units, marking a 19% year-on-year increase. Its growth was driven by strong international momentum, especially in the Middle East and Africa, although it faced competitive pressures in Mainland China.
Omdia Research Manager Le Xuan Chiew commented, "The Q1 2026 performance reflects a market where supply-side dynamics have temporarily distorted underlying demand signals." The market is in the early stages of a supply-side disruption cycle, driven by sustained increases in memory, storage, and processing component costs.
As a result, the second half of 2026 is expected to face a more challenging environment, with potential corrections as the market adjusts to inventory overhangs and inflationary pressures. The industry must navigate these pressures while balancing consumer demand and supply chain constraints.
Last updated: 30 April 2026, 10:19 pm
