IDC: Tight Memory, Double Impact of Iran Conflict, Global Smartphone Market Declines for First Time in Three Years.

Market research firm IDC data shows that the global smartphone market saw its first decline since 2023 in the first quarter of this year. The tight supply of storage chips and conflicts in the Iran region are expected to further increase costs and restrain market growth. Research data shows that Apple Inc. (AAPL.US) and Samsung Electronics (SSNLF.US) are the only two among the top five brands to achieve growth, with their shipments both increasing by over 3%, while the overall market decreased by 4.1%. These two giants each hold about one-fifth of the market share, and compared to Chinese phone manufacturers, these two companies have an advantage in ensuring long-term supply and coping with rising costs. Due to the increase in component and logistics costs, shipments of companies like OPPO have significantly declined this year. The team led by IDC analyst Nabila Popal said, "We expect that the slowdown in the first quarter is just the prelude to the situation in 2026. In multiple emerging markets, phone prices have risen by 40%-50%, severely suppressing demand." Apple Inc. performed strongly in the Chinese market, with its popular iPhone 17 series helping it achieve 30% growth in the world's largest smartphone market. IDC also pointed out that Huawei and Honor also achieved shipment growth in this quarter, with Honor achieving a 24% year-on-year growth through overseas expansion. However, all companies need to adjust their product layouts to cope with the expected shortage of storage chips that is forecasted to continue until the second half of 2027. The Counterpoint research data released last week also showed a 6% decrease in shipments in the first quarter, but both firms attributed the decline to the impact of rising memory costs, with Apple Inc. surpassing Samsung in market share. Both institutions attribute the decline mainly to the impact of the soaring memory costs. Popal of IDC wrote that in addition to the rise in component and raw material prices, smartphone brands are facing higher transportation costs due to the conflicts in the Middle East. Many companies are restructuring their spending, including reducing the configuration of certain models, cutting marketing and support for distributors, further restricting market growth.