The international smartphone market carried out above expectations in 1Q26, rising by 1% 12 months on 12 months, stories Omdia.
According to the newest examine from the expertise analysis and advisory group, nonetheless, this progress doesn’t but mirror the complete influence of rising supply-side prices, as vendor stock frontloading within the channel briefly supported shipments.
Memory and storage prices are growing sharply, whereas distributors haven’t absolutely carried out retail worth will increase throughout all markets. Mobile DRAM and NAND costs rose by round 90% quarter-on-quarter in Q1 and are anticipated to extend an additional 30% in Q2, considerably growing bill-of-materials. At the identical time, early indicators of logistics and commerce movement disruption are including friction to international provide chains.
Samsung reclaimed the highest place in Q1, supported by resilient flagship demand and robust Galaxy S26 sequence pre-orders – up greater than 10% globally in contrast with the Galaxy S25 sequence – regardless of launch delays impacting its mid-range refresh cycle. Apple additionally delivered a robust quarter, supported by secure pricing and regular demand for the iPhone 17 sequence, regardless of some regional provide disruptions. Beyond the highest two, most Android distributors are dealing with challenges on each volumes and margins, responding with tighter portfolios, selective launches and extra disciplined pricing. However, throughout the “Others” class, Huawei’s sturdy home efficiency, supported by aggressive pricing, and Honor’s continued abroad growth drove share good points.
“Vendors have little choice but to raise prices as cost pressures intensify”, mentioned Sanyam Chaurasia, Principal Analyst at Omdia. “While price increases are happening across the industry, the impact is not uniform. Vendors with greater exposure to entry and mid-tier segments, such as Xiaomi and Transsion, are more exposed due to thinner margins and limited pricing power. In contrast, Apple has largely held pricing, while Samsung is taking a more market-selective approach. Beyond headline price increases, vendors are also managing margins through configuration changes, reduced promotions and tighter channel pricing. This is creating a more complex pricing environment, with financing and trade-ins playing a bigger role in supporting demand.”
“The worst is still ahead as cost-driven headwinds weigh on the smartphone value chain,” commented Runar Bjorhovde, Principal Analyst at Omdia. “In the close to time period, increased pricing is creating a requirement shock, with shoppers delaying purchases, earlier than step by step adapting as pricing stabilises. At the identical time, uncertainty round pricing and availability is prompting some channel companions to extend stock, briefly supporting shipments. However, this can delay somewhat than offset the influence for distributors, with strain anticipated to accentuate because the 12 months progresses. Vendors might want to concentrate on margin safety, tighter portfolios and higher-value alternatives whereas strengthening model and channel execution. Omdia expects the worldwide smartphone market to be more and more skewed to the draw back in 2026, with shipments prone to decline by round 15% amid escalating prices and macro volatility.