The latest report from market research firm TrendForce shows that in the first quarter of 2026, against the backdrop of a 1.7% year-on-year decline in overall global smartphone shipments, Apple's iPhone production surged 19.7% year-on-year, bucking the trend and achieving growth. TrendForce estimates that Apple produced about 60.2 million iPhones in the quarter, ranking second among global smartphone manufacturers, second only to Samsung, which produced about 62.6 million units, with the latter growing only 2.3% year-on-year. The report attributes Apple's outstanding performance in part to the launch of the iPhone 17e, as well as the continued ramping up of mass production of the wider iPhone 17 series.
TrendForce pointed out that Apple has shown relatively stronger ability to withstand pressure when the cost of components such as memory chips is generally rising, placing a heavy burden on the smartphone market. Due to its strong profitability, Apple is considered to be more capable of absorbing rising costs in the short term without having to pass on the pressure to consumers through significant price increases like other manufacturers. According to the report, Apple is more likely to prioritize expanding market share during this industry downturn to lay the foundation for its expanding software and services business. Currently, Apple is one of the few mainstream smartphone brands that has not yet raised its terminal selling prices due to soaring storage prices.
Compared with Apple's solid performance, the situation of other manufacturers is obviously more difficult. According to TrendForce data, Chinese mobile phone brands OPPO, Xiaomi and vivo ranked third to fifth globally with production of 29.5 million units, 26 million units and 22 million units respectively. However, the report also warned that with storage costs rising sharply and profit margins continuing to be squeezed, the three manufacturers' 2026 full-year production plans are facing greater uncertainty. Transsion, ranked sixth, produced approximately 19.8 million units in the quarter. As its business is highly concentrated in the entry-level and low-priced model market, which already has slim profits, it is considered to be particularly exposed to this round of cost shocks.
Looking forward to the market outlook, TrendForce predicts that global smartphone production will decline by approximately 16.2% year-on-year in 2026 to approximately 1.051 billion units. Research institutions warn that if storage prices stay at high levels longer than expected and major brands are forced to raise retail terminal prices multiple times, actual output and demand may weaken further. In such an industry environment, Apple is regarded as one of the few manufacturers that is expected to continue to consolidate or even improve its market position in the downturn with its stronger cost affordability and robust product and service ecosystem.