Global Smartphone Market Slumps 6% as Apple Tops Q1 for First Time Amid Memory Crunch

The global smartphone market is currently experiencing a severe downturn. According to a Counterpoint Research report, smartphone shipments in the first quarter of 2026 (January–March) declined by 6 percent compared to the same period last year. The primary reasons are a severe shortage of DRAM and NAND flash memory, along with instability in the Middle East.

Apple makes history

For the first time in smartphone history, Apple has secured the top position in a first quarter. During this period, the iPhone manufacturer led the market with a 21 percent share.

The key drivers behind this success include strong demand for the iPhone 17 series, aggressive trade-in offers, and a 23 percent sales increase in China.

Samsung and Xiaomi under pressure

Traditionally a first-quarter giant, Samsung has fallen behind this time with a 20 percent market share. Its shipments declined by 6 percent, mainly due to the delayed launch of the Galaxy S26 series and weak entry-level demand.

Xiaomi, ranked third with a 12–14 percent share, suffered the biggest setback. The company’s shipments dropped by 12 to 19 percent, as the price-sensitive entry-level smartphone segment was hit hardest.

Surprise performers

Outside the top five, Google and Nothing delivered strong performances. Google achieved 14 percent growth driven by its Pixel series. The most talked-about name was Nothing, which recorded a 25 percent increase in shipments.

Challenging outlook ahead

According to Counterpoint forecasts, the shortage may persist until at least the end of 2027, as memory manufacturers prioritize production for AI data centers. As a result, software and services are expected to become increasingly important for companies compared to hardware in the coming years.

DBTech/BMT/OR