Omdia: China Smartphone Shipments Fell 1% in First Quarter of 2026 as Rising Costs Pushed Up Device Prices

2026. 4. 15. 17:18
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"To balance volume, revenue, and profitability against rising memory prices, several major vendors, including Xiaomi, HONOR, OPPO, and vivo, raised retail prices on select models by 10-30% in the first quarter," said Hayden Hou, Principal Analyst at Omdia (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fomdia.tech.informa.com%2Fauthors%2Fhayden-hou&esheet=54498660&newsitemid=20260413266424&lan=en-US&anchor=Hayden+Hou%2C+Principal+Analyst+at+Omdia&index=1&md5=0b43d7e82c52a683305f24264f98de86). "This had a clear and negative impact on consumer purchasing sentiment. Huawei and Apple took the opposite approach. Both largely avoided broad price hikes, using cost pressures as a chance to capture market share. That strategy made their products more appealing to consumers and fueled stronger Q1 results."

"In Q1 2026, the combined market share of the top six vendors - Huawei, Apple, Xiaomi, OPPO, vivo, and HONOR - reached 94%," Hayden Hou added. "Top vendors hold advantages in supply chains, R&D, OS and services, ecosystems, and distribution. Yet market dynamics demand constant vigilance. Memory volatility and AI's trajectory will structurally alter the competitive landscape. As rising memory costs continue to bite, Omdia projects that China's smartphone market will shrink by 10% in 2026."

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LONDON -- Businesswire -- According to Omdia’s latest research, Mainland China’s smartphone market declined by 1% year on year in 1Q 2026, with shipments reaching 69.8 million units. In 1Q 2026, rising component costs, particularly for memory, prompted major vendors to increase product prices, further extending the market’s downward trajectory. Huawei ranked first with shipments of 13.9 million units, capturing a 20% market share and maintaining strong momentum. Apple followed in second place with 13.1 million units and a 19% share. OPPO, in its first quarter following realme’s reintegration, shipped 11.0 million units to rank among the top three vendors. vivo recorded 10.5 million units, ranking fourth, while Xiaomi placed fifth with shipments of 8.7 million units.

“To balance volume, revenue, and profitability against rising memory prices, several major vendors, including Xiaomi, HONOR, OPPO, and vivo, raised retail prices on select models by 10-30% in the first quarter,” said Hayden Hou, Principal Analyst at Omdia (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fomdia.tech.informa.com%2Fauthors%2Fhayden-hou&esheet=54498660&newsitemid=20260413266424&lan=en-US&anchor=Hayden+Hou%2C+Principal+Analyst+at+Omdia&index=1&md5=0b43d7e82c52a683305f24264f98de86). “This had a clear and negative impact on consumer purchasing sentiment. Huawei and Apple took the opposite approach. Both largely avoided broad price hikes, using cost pressures as a chance to capture market share. That strategy made their products more appealing to consumers and fueled stronger Q1 results.”

Lucas Zhong, Senior Analyst at Omdia (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fomdia.tech.informa.com%2Fauthors%2Flucas-zhong&esheet=54498660&newsitemid=20260413266424&lan=en-US&anchor=Lucas+Zhong%2C+Senior+Analyst+at+Omdia&index=2&md5=1477521244d6aff16070b8a47b427f87), added: “Meaningful innovation in flagship and foldable devices is expected to help stabilize overall demand. Advances such as the LOFIC image sensor in Xiaomi’s 17 Ultra series, the near crease-free design of OPPO’s Find N6, and the lightweight design combined with a high-capacity battery in HONOR’s Magic V6 highlight how improvements in peripheral specifications will remain a key theme in product iteration this year. At the same time, AI agent capabilities will be a major focus for leading vendors at the software level. Smartphones remain the ideal platform for AI agents, and for vendors, breakthroughs in AI functionality represent a critical pathway forward. Vendors that can deliver differentiated and practical AI agent experiences will be better positioned to enhance brand perception and establish new strategic advantages.”

“In Q1 2026, the combined market share of the top six vendors - Huawei, Apple, Xiaomi, OPPO, vivo, and HONOR - reached 94%,” Hayden Hou added. “Top vendors hold advantages in supply chains, R&D, OS and services, ecosystems, and distribution. Yet market dynamics demand constant vigilance. Memory volatility and AI’s trajectory will structurally alter the competitive landscape. As rising memory costs continue to bite, Omdia projects that China’s smartphone market will shrink by 10% in 2026.”

(To view the table, please visit https://www.businesswire.com/news/home/20260413266424/en/)

ABOUT OMDIA

Omdia, part of TechTarget, Inc. d/b/a Informa TechTarget (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.

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