Global smartphone production fell 1.7% in Q1 2026 with 284 million units, reports TrendForce. Analysts predict the decline will accelerate, forecasting a 16.2% drop to 1.051 billion units for the full year. Rising memory prices threaten to worsen the situation as manufacturers exhaust cheap stockpiles.

Apple emerged as a standout performer with 60.2 million units produced, marking a 19.7% increase from Q1 2025. The company benefited from strong iPhone 17e demand and superior profit margins that position it well to expand market share during the downturn. Samsung led with 62.6 million units (+2.3%) despite concerns about its thin-margin low-end models.

Chinese manufacturers face tougher conditions as they focus on entry-level and mid-range segments. Oppo, Xiaomi, and vivo rounded out the top five, while Transsion's 19.8 million units placed it just outside the rankings. Component shortages will cut into profitability for these growing companies as the industry contracts.