Q1 smartphone production down 1.7%

Despite a sharp rise in memory prices since the second half of 2025, the effect on production was minimal because brands still held inventories of cheaper memory components.

Additionally, consumer expectations of higher prices in the future have helped sustain short-term demand, cushioning the impact of rising memory costs on production during the quarter.

However, as low-cost memory supplies are gradually exhausted and significant ongoing increases in memory prices reduce profits, most smartphone brands have begun adjusting production in the second quarter.

2026 smartphone production is forecast by TrendForce to decline approximately 16.2% YoY to 1.051 billion units in 2026.

Samsung remained the world’s largest smartphone producer in 1Q26, with output reaching approximately 62.6 million units. Production increased 7.6% QoQ and 2.3% YoY, supported by inventory build-up for new Galaxy S-series models.

Apple ranked second with its production of approximately 60.2 million units during the quarter. In addition to ongoing production ramp-up for new iPhone models, output was supported by the launch of the iPhone 17e, resulting in 19.7% YoY growth.

First quarter production declined seasonally among the major Chinese smartphone brands, including Oppo (29.5 million units), Xiaomi (26 million units), and Vivo (22 million units). These three brands ranked third through fifth globally by production volume.

While all three delivered strong market share gains in previous years, surging memory costs are now weighing heavily on profitability, creating significant uncertainty around their 2026 production plans. As a result, production targets may be revised downward if cost pressures persist.

Transsion produced approximately 19.8 million units in 1Q26, roughly flat compared with the same period last year, placing sixth among global smartphone brands.