Global Smartphone Sales Declined In The First Quarter, With Only Apple And Samsung Growing, Supporting The Performance Of Hon Hai And Largan

According to the latest data from market research firm IDC, the global smartphone market declined for the first time since 2023 in the first quarter of this year. Tight storage supply and the impact of the war in Iran have further pushed up the cost of mobile phones and restricted shipment growth. Apple and Samsung are the only brand manufacturers whose shipments have grown, which has also provided relative support to the performance of supply chains including TSMC, Hon Hai, and Largan.

IDC said that among the top five mobile phone brands in the world, Apple and Samsung were the only two manufacturers to increase their mobile phone shipments. Both shipments increased by more than 3%, while the overall market fell by 4.1%.Since the two companies each account for about a fifth of global mobile phone shipments, they have a better advantage than competing peers in mainland China in ensuring long-term supply and coping with rising costs.

In comparison, competitors from OPPO to Xiaomi have seen a sharp decline in mobile phone shipments this year, mainly affected by soaring component and logistics costs.IDC analysts and teams believe that the expected slowdown in the first quarter is only a mild precursor to greater challenges in 2026, and in many emerging markets, prices have risen by as much as 40% to 50%, significantly suppressing demand.

It is reported that Apple performed strongly in the mainland China market last quarter. The new iPhone 17 series was very popular and helped Apple's shipments in mainland China increase by 30%. At the same time, Huawei and its high-end brand Honor also successfully increased shipments. Honor relied on overseas expansion to increase shipments by 24% year-on-year.

However, IDC warns that all companies currently must adjust their product lines to cope with the storage shortage that is expected to last until the second half of 2027.

In addition to IDC, data released by another research institution, Counterpoint Research, last week also showed that global smartphone shipments fell by 6% in the first quarter, but its market share ranking placed Apple ahead of Samsung. Both institutions believe that the main reason for the decline in overall mobile phone shipments is the sharp increase in storage costs.

IDC analysts pointed out that in addition to rising component and material costs, mobile phone brands are also facing conflicts in the Middle East that drive up transportation costs. Therefore, many manufacturers are re-adjusting their expenditure structures, including reducing the specifications of some models, and cutting marketing and channel support. This move will further restrict market growth.

As for the supply chain, since most of the mobile phone component orders of TSMC, Hon Hai, and Largan are dominated by Apple and Samsung, unless there is a significant decline in the sales of Apple and Samsung, external judgments will have a relatively limited impact on Taiwanese manufacturers, but it is still necessary to pay attention to the overall mobile phone market.