Smartphone Revenues Went Up 8 Percent in 1Q26

Global smartphone revenues grew 8% YoY in 1Q26, reaching $117 billion, despite a decline in shipments, according to Counterpoint Research. The market was pressured by rising Bill of Materials (BOM) costs and a severe memory shortage, which weighed on shipments. However, higher demand for premium devices and price increases across portfolios drove ASP up 12% YoY to a Q1 record of $399.

“The global smartphone market is going through a transition phase where volume-led growth is being replaced by value-led expansion. Q1 2026 reflects a structural transition, as memory constraints and elevated component costs are driving price increases, and forcing OEMs to rationalize portfolios, particularly in entry- and mid-tier segments. At the same time, resilient demand in the premium segment, supported by stronger upgrade cycles, financing, and trade-in programs, has helped sustain higher-value shipments. This shift has supported sustained ASP growth, partially offsetting the decline in shipments and supporting overall market value growth. Apple’s revenue climbed 22% YoY in Q1 2026, registering the fastest growth among the top five smartphone brands while also hitting a first-quarter record high. Furthermore, the brand led the global smartphone market in terms of shipments for the first time in the first quarter, capturing a 21% share,” said Shilpi Jain, Senior Analyst at Counterpoint Research.

Samsung was the second-largest contributor in both revenue and shipments during the quarter. Although the brand’s shipments remained flat in Q1, ASP rose 4% YoY, helping sustain a 4% revenue growth. Xiaomi recorded the steepest decline among the top five brands, with shipments falling 19% and revenue tumbling 18%. This was driven by the brand’s high exposure to entry- and mid-tier segments, which were negatively impacted by rising memory costs. OPPO and vivo ranked fourth and fifth, respectively. During the quarter, OPPO’s ASP climbed 3% while vivo’s grew 10%. Looking ahead, the global smartphone market is expected to remain under pressure through 2026, and shipments are likely to decline further. A substantial recovery is expected only in late 2027. However, continued premiumization and elevated memory prices are expected to support ASP expansion, partially helping cushion revenue decline.