Global Smartphone Sales Declined in Q1, With Only Apple and Samsung Growing, Supporting the Performance of Hon Hai and Largan
The global smartphone market declined in the first quarter of 2026 for the first time since 2023, with overall shipments down 4.1%, according to IDC. Tight memory supply and the war in Iran pushed up handset costs and restricted shipment growth. Apple and Samsung were the only top-five brands to grow, both increasing shipments by more than 3% and each holding about one-fifth of the global market,
According to the latest data from market research firm IDC, the global smartphone market declined in the first quarter of this year for the first time since 2023. Tight memory supply and the impact of the war in Iran further pushed up handset costs and restricted shipment growth. Apple and Samsung were the only brand manufacturers to increase shipments, providing relative support to the performance of supply chains including TSMC, Hon Hai, and Largan.
IDC said that among the world's top five smartphone brands, Apple and Samsung were the only two manufacturers to increase shipments, with both up more than 3%, while the overall market fell 4.1%. Since the two companies each account for about one-fifth of global smartphone shipments, they hold a better advantage than competing peers in mainland China in securing long-term supply and coping with rising costs.
By comparison, competitors from OPPO to Xiaomi saw sharp shipment declines this year, mainly affected by soaring component and logistics costs. IDC analysts believe the expected first-quarter slowdown is only a mild precursor to greater challenges in 2026, and in many emerging markets prices have risen by as much as 40% to 50%, significantly suppressing demand.
Apple performed strongly in the mainland China market last quarter. The new iPhone 17 series proved very popular and helped Apple's shipments in mainland China increase by 30%. Meanwhile, Huawei and its high-end brand Honor also successfully increased shipments, with Honor relying on overseas expansion to raise shipments by 24% year-on-year.
However, IDC warns that all companies must currently adjust their product lines to cope with the memory shortage expected to last until the second half of 2027.
In addition to IDC, data released last week by another research institution, Counterpoint Research, also showed that global smartphone shipments fell 6% in the first quarter, though its market share ranking placed Apple ahead of Samsung. Both institutions believe the main reason for the decline in overall handset shipments is the sharp increase in memory costs.
IDC analysts pointed out that in addition to rising component and material costs, smartphone brands are also facing Middle East conflicts that drive up transportation costs. As a result, many manufacturers are readjusting their expenditure structures, including reducing the specifications of some models and cutting marketing and channel support—a move that will further restrict market growth.
As for the supply chain, since most smartphone component orders for TSMC, Hon Hai, and Largan are dominated by Apple and Samsung, external judgments will have a relatively limited impact on Taiwanese manufacturers unless there is a significant decline in Apple and Samsung sales—though the overall smartphone market still warrants attention.