Samsung Rises to No. 1 in Smartphones Despite 'Chipflation'... Strong Performance Across Entire Lineup

Despite a severe downturn in the global smartphone market triggered by "chipflation"—a sharp surge in semiconductor prices—Samsung Electronics managed to hold on to the top spot in market share, buoyed by the launch of new models such as the Samsung Galaxy S26 series. Samsung is expected to sustain shipment growth in the second half of the year by focusing on high-margin premium devices, including the tentatively named Galaxy Z Wide Fold.
According to International Data Corporation (IDC) on the 16th, global smartphone shipments in the first quarter of this year totaled 289.7 million units, down 4.1% from a year earlier. A spike in component costs, driven by supply shortages of memory semiconductors such as DRAM and NAND flash, has been passed directly on to retail prices, prompting consumers to hold back on spending. Since the outbreak of war involving the Islamic Republic of Iran, international oil prices have soared, and rising energy and logistics costs are rapidly pushing up smartphone production expenses.
Even under these overlapping headwinds, shipments of Samsung Electronics and Apple products continued to rise. Samsung Electronics shipped 62.8 million units in the first quarter, up 3.6% from the same period last year. Its market share reached 21.7%, putting it in first place worldwide, up 1.6 percentage points from 20.1% a year earlier. This was largely driven by strong sales of the flagship Samsung Galaxy S26 Ultra, despite the series being released about a month later than last year. The early launch of the budget-friendly Samsung Galaxy A series also contributed to higher shipments. Although production costs jumped sharply, Samsung kept price hikes to a minimum and focused on boosting sales volume.
Apple’s market share also increased over the same period, rising from 19.6% to 21.1%. The company shipped 61.1 million units in the first quarter, up 3.3% year-on-year. Robust demand for premium products, including strong sales of the iPhone 17 series in China, drove the growth in shipments. By contrast, shipments of Chinese manufacturers ranked third to fifth in market share all declined. With memory prices not expected to stabilize until around 2027, IDC projected that smartphone makers will, for the time being, concentrate on sales strategies centered on high-margin premium devices.
Samsung Electronics plans to roll out a series of new foldable smartphones in the second half of this year. The new foldable models Samsung Galaxy Z Fold 8 and Samsung Galaxy Z Flip 8 will be unveiled for the first time at Galaxy Unpacked in July. In particular, the company is expected to debut a wide-format foldable phone, the Galaxy Z Wide Fold, which is elongated horizontally. When folded, it functions like a regular smartphone, and when unfolded, it offers a tablet-like large display.
At the same time, Samsung has also begun developing a new triple-folding device with a significantly expanded display, similar in concept to the existing Samsung Galaxy Z TriFold.
mkchang@fnnews.com Reporter Jang Min-kwon Reporter