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

Omdia reports Mainland China smartphone shipments fell 1% year-on-year in 1Q 2026 to 69.8 million units, pressured by rising memory costs and retailer price increases.

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LONDON--(BUSINESS WIRE)-- 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.

Mainland China smartphone market shipment, 1Q23 to 1Q26

“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. “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, 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.”

Mainland China’s smartphone shipment and annual growth Omdia Smartphone Market Pulse: 1Q26
Vendor	1Q26 shipments (million)	1Q26 market share	1Q25 shipments (million)	1Q25 market share	Annual growth
Huawei	13.9	20%	13.0	18%	7%
Apple	13.1	19%	9.2	13%	42%
OPPO	11.0	16%	11.3	16%	-3%
vivo	10.5	15%	10.4	15%	0%
Xiaomi	8.7	12%	13.3	19%	-35%
Others	12.7	18%	13.6	19%	-7%
Total	69.8	100%	70.9	100%	-1%
Note: Huawei excludes HONOR since 1Q21. OPPO includes OnePlus and realme. vivo includes iQOO. Percentages may not add up to 100% due to rounding. Source: Omdia Smartphone Horizon Service (sell-in shipments), April 2026

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260413266424/en/

Fasiha Khan: fasiha.khan@omdia.com
Eric Thoo: eric.thoo@omdia.com

Source: Omdia

Key Terms

ai agent technical

An AI agent is software that uses artificial intelligence to observe data, decide on actions, and carry them out with little or no human intervention. For investors, AI agents matter because they can automate tasks like trading, customer support, or data analysis, potentially boosting efficiency, lowering costs, and changing a company’s competitive edge—much like a tireless, adaptable assistant running parts of a business continuously.

sell-in shipments technical

Sell-in shipments are the products a manufacturer or supplier sends to distributors, wholesalers or retailers during a reporting period; they count as sales to the channel but not yet as purchases by end customers. Investors watch sell-in because it shows how much stock is moving into the sales pipeline—like a factory delivering boxes to stores—which can signal future revenue growth but may overstate demand if retailers are simply building up inventory rather than selling to consumers.