Apple and Samsung each produced nearly 240 million smartphones in 2025, tying for the top position in global production, according to TrendForce. Global smartphone output reached approximately 1.254 billion units last year, marking a 2.5% year-over-year increase. The research firm attributes the market's performance to China's government subsidy programs in the first half and seasonal flagship launches in the second half.

Apple's production surged more than 50% quarter over quarter in Q4 2025 following the iPhone 17 lineup launch. The new models benefited from well-positioned retail pricing that drove strong market performance. TrendForce suggests Apple could maintain momentum in 2026 with a more aggressive pricing strategy, though the broader industry faces mounting challenges.

Rising memory prices are expected to significantly increase production costs in 2026, potentially reducing global output by at least 10% to around 1.135 billion units. Manufacturers will face difficult choices between raising prices to preserve margins or lowering specifications to maintain shipment volumes, with entry-level devices most vulnerable to component cost increases.