Global smartphone shipments fell 6% year over year in the first quarter of 2026 as a memory crunch and soft demand weighed on volumes.
Apple Inc. (NASDAQ:AAPL) carried its fourth-quarter momentum into the new year, leading the market for the first time in a March quarter on strong iPhone 17 demand and disciplined supply chain execution.
Apple captured a 21% market share, highlighting its relative resilience despite ongoing pressures across the broader industry.
Major vendors, including Samsung Electronics Co., Ltd. (OTC:SSNLF) and Chinese OEMs, faced a challenging start to 2026 as supply constraints and weak demand reshaped competitive dynamics, according to Counterpoint Research.
Memory Shortages Pressure Industry Volumes
Analyst Shilpi Jain said global smartphone shipments fell 6% year-over-year as Dynamic Random Access Memory (DRAM) and Not AND (NAND) shortages disrupted supply and raised costs across manufacturers.
Jain noted that memory suppliers prioritized AI data centers over consumer electronics, forcing OEMs to absorb higher bills of materials or pass costs to consumers.
She added that rising energy prices, logistics costs, and geopolitical tensions weakened consumer sentiment, particularly impacting entry- and mid-range segments.
Apple Leads While Samsung Faces Delays
Apple captured the top spot with a 21% market share and 5% growth, supported by strong demand for the iPhone 17, supply chain execution, and resilience in premium segments.
In contrast, Samsung’s shipments declined 6% year over year to a 20% share, as delays in the Galaxy S26 launch and weaker demand for entry-tier devices weighed on performance, even as early traction for higher-end models remained solid.
Diverging Trends Among Other OEMs
Jain said volume-driven brands like Xiaomi Corp. (OTC:XIACY) faced sharper declines due to exposure to price-sensitive segments. At the same time, OPPO and vivo saw mixed performance across regions and price tiers.
Meanwhile, Alphabet Inc. (NASDAQ:GOOGL) Google, and Nothing outperformed with double-digit growth, driven by differentiated products, expanding channels, and stronger positioning in niche segments.
AAPL Price Action: Apple shares were down 0.12% at $260.17 during premarket trading on Friday, according to Benzinga Pro data.
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