Global smartphone shipments dropped 4.1% year over year to 289.7 million units in the first quarter of 2026, ending 10 straight quarters of growth since mid-2023, according to the International Data Corp. (IDC) Worldwide Quarterly Mobile Phone Tracker.
The slowdown is tied to a shortage of memory components and rising costs, which are pushing phone prices higher and limiting supply.
“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,” said Nabila Popal, senior research director for Worldwide Consumer Devices, IDC. “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.”
Prices in some emerging markets have risen by as much as 40% to 50%, making phones harder to afford. Brands are cutting costs, reducing marketing, and releasing lower-spec models to manage expenses, but these moves are also slowing growth.
Despite the overall decline, Samsung and Apple were the only two brands in the global top five to grow in Q1 2026.
Samsung regained the top spot, helped by strong demand for its Galaxy S26 Ultra and earlier release of its mid-range A-series phones. The company posted a 3.6% increase in shipments compared with last year.
Apple ranked second, with a 3.3% increase in global sales. Its iPhone 17 series saw strong demand, especially in China, where sales grew by more than 30%. However, supply issues and reduced retail support in some markets limited faster growth.
Xiaomi held third place but recorded the biggest drop among the top five, partly due to cutting shipments of older models to avoid steep price increases.
OPPO placed fourth after integrating with realme, with stronger sales in China helping offset weaker global performance. vivo ranked fifth, supported by steady demand in China and its leading position in India.
Outside the top five, Honor, Lenovo (Motorola), and Huawei posted gains. Honor recorded the fastest growth among the top 10, growing 24% year over year as it expanded overseas.
“This was a challenging quarter for all smartphone players as they figure out a balance between profitability and growth,” said Kiranjeet Kaur, associate director of Consumer Devices, IDC. “Apple and Samsung benefited from their dominance in the premium segment where they strategically held back price increases, while others such as Xiaomi, OPPO, and vivo made efforts to move to higher price bands.”
IDC said brands are shifting focus to more expensive models to offset rising costs, especially as cheaper phones become less profitable.
“The 4% decline in the market is just a sample of what’s to come as the memory situation intensifies,” said Anthony Scarsella, research director for Mobile Phones, IDC.
IDC expects the trend toward more expensive smartphones to continue, even as memory prices are projected to stabilize by the second half of 2027.