Global smartphone production reached 337 million units in the fourth quarter of 2025, increasing 2.7 percent quarter on quarter, driven largely by strong shipments of the latest iPhone models from Apple, according to a report from TrendForce.
For the full year, both Apple and Samsung Electronics produced nearly 240 million smartphones each, tying for the top position in global smartphone production rankings.
Smartphone Production Growth in 2025
TrendForce reported that the global smartphone industry benefited from strong demand throughout 2025. China’s subsidy programs supported smartphone shipments during the first half of the year, while the second half saw the traditional seasonal peak driven by major product launches and holiday demand.
As a result, global smartphone production reached approximately 1.254 billion units in 2025, representing growth of 2.5 percent year on year.
However, the outlook for 2026 appears more challenging for smartphone brands due to rising component costs.
Memory Price Surge May Impact 2026 Smartphone Output
The report warns that surging memory prices are expected to significantly increase smartphone manufacturing costs in 2026.
Due to these cost pressures, global smartphone production could decline by at least 10 percent year on year to around 1.135 billion units.
Smartphone vendors may face difficult decisions between increasing retail prices to protect profit margins or lowering device specifications to maintain shipment volumes. The entry-level smartphone segment is expected to be the most affected by these changes.
Apple and Samsung Lead Global Production
The iPhone 17 series from Apple delivered strong market performance in 2025, supported by competitive retail pricing.
Apple’s smartphone production in the fourth quarter of 2025 reached approximately 87 million units, representing more than 50 percent quarter on quarter growth and setting a new quarterly production record for the company. If Apple adopts a more aggressive pricing strategy in 2026, it could maintain production momentum and sales growth.
Meanwhile, Samsung Electronics produced around 58.2 million smartphones in the fourth quarter of 2025, representing an 11.1 percent increase year on year.
Samsung’s strong vertical integration and higher share of premium smartphones could allow the company to maintain or even expand its market share in 2026 by delaying price increases and minimizing retail price hikes.
Chinese Smartphone Brands Adjust Production Strategy
Chinese smartphone brands are also adapting their strategies to cope with rising component costs and increasing competition.
Xiaomi, including its Redmi and POCO sub-brands, ranked third globally with annual production close to 170 million units in 2025. However, the company reduced output by about 7 percent quarter on quarter in the fourth quarter of 2025 to adjust inventory and respond to rising memory costs. In 2026, Xiaomi is expected to increase the proportion of midrange and premium devices to improve profitability.
Oppo, which includes brands such as OnePlus and Realme, ranked fourth globally with total production of about 143 million units in 2025. Because Realme focuses heavily on affordable smartphones, the group began reducing the share of entry-level models toward the end of the year to stabilize operations.
Vivo, including the iQOO brand, ranked fifth and adopted a cautious production strategy in the fourth quarter of 2025, cutting output by roughly 16 percent quarter on quarter due to rising memory costs and stronger competition from devices such as Huawei’s Nova series.
Emerging Market Brands Face Greater Pressure
Brands focused on entry-level devices may face the biggest challenges in 2026.
Transsion Holdings, which operates brands such as TECNO, Infinix, and itel, reduced smartphone production sharply in the fourth quarter of 2025 to 21.1 million units, representing a 28 percent quarter on quarter decline. This move was aimed at reducing inventory levels and preparing for potential demand weakness in emerging markets.
Honor ranked seventh globally and increased production toward the end of 2025, resulting in 7 percent quarter on quarter growth in the fourth quarter. However, the company and other Chinese smartphone vendors will face growing competition from Huawei as well as rising component costs in 2026.
Lenovo Maintains Stable Smartphone Production
Lenovo, including its Motorola brand, ranked eighth globally with smartphone production of approximately 61 million units in 2025.
The company’s production remained relatively stable during the fourth quarter of 2025. In 2026, Lenovo is expected to make only limited adjustments to smartphone output due to strong operator driven sales channels and the company’s large PC business, which helps secure more stable access to memory components.
Smartphone Industry Faces a Cost Driven Transition
The global smartphone industry is entering a period of cost driven transition as component prices rise and competition intensifies. While flagship devices and premium models may continue to drive revenue growth, entry-level smartphones are expected to face the greatest pressure. Smartphone brands will need to carefully balance pricing strategies, product specifications, and supply chain management to maintain profitability in 2026.
BABURAJAN KIZHAKEDATH
