Global smartphone revenues increased 8 percent to reach $117 billion in Q1 2026, despite a decline in overall shipments, according to Counterpoint Research.
The market faced pressure from rising Bill of Materials (BOM) costs and a severe memory shortage, but higher demand for premium smartphones and portfolio-wide price hikes pushed average selling prices (ASP) up 12 percent YoY to a record $399 for a first quarter.
Counterpoint Research Senior Analyst Shilpi Jain said the smartphone industry is shifting from volume-led growth to value-led expansion. Rising memory prices and component shortages are forcing smartphone makers to increase prices and streamline portfolios, particularly in entry-level and mid-range devices. At the same time, stronger upgrade cycles, trade-in programs, and financing offers are sustaining demand for premium smartphones.
Apple emerged as the top-performing smartphone brand in Q1 2026. Apple’s revenue surged 22 percent, the fastest growth among the top five smartphone vendors, while the company also achieved a record first-quarter shipment share of 21 percent globally.
Research Director Jeff Fieldhack said strong demand for the base iPhone 17 and iPhone 17 Pro Max lifted Apple’s ASP by 11 percent. Apple maintained relatively stable pricing despite increasing BOM costs, helping it remain insulated from the ongoing memory crisis. The company also benefited from subsidies, promotions, and trade-in offers across Asia-Pacific markets.
Samsung Electronics ranked second in both revenue and shipments during the quarter. Although Samsung’s shipments remained flat, its ASP increased 4 percent, supporting a 4 percent rise in revenue. Growth was supported by recovery in the mid-tier smartphone segment and stronger momentum from the launch of the Galaxy S26 series. The Ultra variant generated higher pre-bookings than its predecessor, while Samsung also boosted ASPs by removing lower-storage variants and positioning its portfolio around higher specifications.
Xiaomi recorded the sharpest decline among the top five smartphone brands. Xiaomi’s shipments dropped 19 percent, while revenue declined 18 percent. The company’s heavy exposure to budget and mid-range devices left it vulnerable to rising memory costs and repeated price increases, which weakened demand across most markets except Latin America, where aggressive promotions helped stabilize sales.
OPPO and vivo secured the fourth and fifth positions globally in terms of revenue.
OPPO’s ASP rose 3 percent due to stronger focus on higher-value devices and disciplined portfolio management.
vivo’s ASP increased 10 percent, helping drive a 5 percent increase in revenue, supported by stronger sales of premium and mid-range devices across its V and X series in India and S series in China.
Looking ahead, the global smartphone market is expected to remain under pressure throughout 2026, with shipment declines likely to continue until a broader recovery emerges in late 2027. However, premiumization and elevated memory prices are expected to sustain ASP growth and partially offset the impact of lower shipment volumes on industry revenues.
BABURAJAN KIZHAKEDATH