The global smartphone market has started 2026 on a stronger footing than expected, with shipments rising by around 1 per cent compared to the same period last year. However, this growth has been supported in part by vendors pushing extra inventory into sales channels, masking mounting cost pressures behind the scenes.

Component pricing is rising sharply, particularly for memory and storage. Mobile DRAM and NAND costs jumped by roughly 90 per cent in the first quarter and are forecast to climb a further 30 per cent in the second quarter. These increases are significantly lifting production costs, with many brands yet to fully pass them on to consumers through higher retail pricing.

Samsung has returned to the top of the market, helped by strong demand for its latest flagship devices and global pre-orders that exceeded the previous generation by more than 10 per cent. Apple also maintained solid performance, supported by consistent pricing and stable demand for its current iPhone range.

Outside the two leaders, many Android manufacturers are under pressure, adjusting product line-ups and tightening pricing strategies. Some brands are gaining ground through aggressive pricing and expansion into new markets, but overall margins remain under strain.

As costs continue to rise, further price increases appear likely, particularly for mid-range devices where profit margins are already limited.