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Investing.com -- The global smartphone market contracted in the first quarter of 2026, ending a 10-quarter growth streak, as memory chip shortages and escalating costs from the Iran war weighed on manufacturers, according to market researcher IDC.
Chinese brands were the most heavily affected by the supply constraints, with Xiaomi recording the largest yearly decline among major manufacturers at 19%. Apple and Samsung were the only top-five brands to register growth during the quarter.
IDC said it expects the situation to deteriorate further throughout 2026. The memory chip supply crunch is projected to persist through the second half of 2027, the research firm added.
The supply shortage has driven up manufacturing costs across the industry, with Chinese smartphone makers bearing the brunt of the impact as they compete in price-sensitive market segments.
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