Samsung Hit by Slowing Smartphone Market in Q1 2026

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The global smartphone market slowed in the first quarter of 2026, and Samsung was hit hard. The Korean firm saw a decline in shipments during the period despite the launch of its flagship devices. It also lost the top spot in this space to arch-rival Apple.
Samsung slips to second spot in global smartphone shipments
According to preliminary data from Counterpoint Research, Samsung’s smartphone shipments dropped 6% YoY in Q1 2026. However, its market share remained flat at 20%. The decline comes from weaker demand in the mass-market segment. Moreover, delays in the launch of the Galaxy S26 series affected overall shipment volumes during the quarter. The Korean firm now holds the second position.
However, Samsung continues to see solid demand for the Galaxy S26 series (especially the Ultra model) around the world. The company reportedly increased production volumes of the latest flagship models for April. As such, it may see an improvement in shipments in the second quarter of 2026, though only time will tell.

Meanwhile, like other OEMs, rising memory chip costs have also put pressure on pricing and margins. To tackle this, Samsung has streamlined entry-level options and focused more on higher-tier configurations. This has led to higher starting prices while bolstering the premium standings of its smartphones.
Apple led the global smartphone market for the first time in Q1 with 21% market share. The company benefited from robust demand for the iPhone 17 series, compelling trade-in offers, and ecosystem stickiness. Xiaomi (12% share) secured third position, though it saw the sharpest YoY decline (19%) among the top five brands. Meanwhile, OPPO (11% share) and vivo (8% share) took the fourth and fifth spots, respectively.
Speaking of the overall global smartphone market, shipments dropped 6% YoY in Q1 2026. “This decline in shipments is primarily driven by memory players prioritizing AI data centers over consumer electronics, leaving OEMs with compressed margins and forcing them to pass increased Bills of Material (BOM) costs directly to the consumer,” said Senior Analyst Shilpi Jain.
















