Investing.com -- Global smartphone shipments fell 6% year-over-year in the first quarter of 2026, as shortages of DRAM and NAND memory components disrupted supplies and raised costs for manufacturers, according to preliminary estimates from Counterpoint Research's Market Monitor.

Apple led the global smartphone market for the first time in a first quarter, capturing 21% market share with 5% growth compared to the same period last year. Strong demand for the iPhone 17 series, combined with aggressive trade-in programs and supply chain management, drove the company's performance. Apple saw stronger growth in China, India and Japan.

Samsung's shipments declined 6% in the quarter with 20% market share, as the company delayed the Galaxy S26 launch and faced weakness in entry-level devices. Early momentum for the S26 series remained strong, with the Ultra variant seeing the highest demand. Samsung adjusted its product portfolio, reducing entry-level options and raising starting prices.

Xiaomi dropped 13% in shipments while maintaining third place with 13% market share. The company faced pressure from its exposure to the price-sensitive entry-level segment, where rising memory costs had the largest impact. The Xiaomi 17 series performed well in China's premium segment.

OPPO and vivo held fourth and fifth positions with 11% and 8% market shares. Vivo declined 2% but retained market leadership in India through its mid-range series, while OPPO saw strong performance from its A5 series in the entry-level segment.

Google and Nothing grew 14% and 25% respectively, driven by expanding distribution channels and product differentiation. Google's Pixel lineup gained share in mature markets through AI capabilities and computational photography, while Nothing's Phone (4a) received strong consumer response.

"This decline in shipments is primarily driven by memory players prioritizing AI data centers over consumer electronics, leaving OEMs with compressed margins and forcing them to pass increased Bills of Material costs directly to the consumer," said Senior Analyst Shilpi Jain at Counterpoint Research.

Rising energy prices, higher logistics costs, and tensions in the Middle East kept consumer demand low and drove interest in refurbished devices. The memory shortage and rising costs impacted price-sensitive segments most, while premium device makers remained relatively resilient.

The outlook for 2026 remains weak, as the memory shortage may last until late 2027. Manufacturers are expected to prioritize value over volume, reduce low-margin models, and rely on software and services for growth.