Omdia just shared its analysis on the US smartphone market in Q1 2026 and things are not looking great. The overall market shrank 3% year-over-year to 33.4 million units.

Firstly, the Q1 2026 decline comes after smartphone manufacturers accelerated an inventory build-up in Q1 2025 in anticipation of the upcoming import tariffs imposed by the Trump Administration. Secondly, the smartphone market is starting to feel the pressure from ever-rising memory chip prices, and there’s a significant slowdown in smartphone purchases.

Additionally, delayed smartphone launches contributed to a more compressed sell-through in Q1. Take the Galaxy S26 series, for example, which came about a month later compared to 2025.

Speaking of Samsung, the later launch helped Apple secure more shipments in the premium segment as consumers decided to board the iPhone 17 ship instead. The series accounted for 70% of all Apple shipments. And even though Apple maintained its leading position, its shipments declined by 3% year-over-year.

Naturally, Samsung takes the second spot, but declined by 5% compared to the same period last year. The late Galaxy S26 launch was partially to blame despite its relatively strong performance. The Galaxy S26 series saw a 25% pre-orders increase over the Galaxy S25 lineup.

Motorola was the only smartphone OEM to show growth. The company secured 18% more shipments compared to Q1 2025, mainly thanks to its updated Moto G portfolio, which accounted for more than 70% of all Motorola shipments.

Google recorded a 7% slip as the Pixel 10 series sales remained stagnant, and the early Pixel 10a launch wasn’t enough to offset the underperforming Pixel 10 series.

Another key takeaway from the analysis is that the US market is becoming more polarized with time. The premium and low-end segments seem to be more resistant to the current market conditions compared to the mid-range tier. The sub-$300 category grew by 8% while the premium $800+ bracket fell by only 1%. The $300-599 and the $600-700 categories fell 19% and 6%, respectively.

Omdia believes that strong collaboration with local carriers and plan-linked promotions is the way forward, as they will minimize the impact of rising component costs on consumers. Analysts predict a 4% market contraction for the full 2026 year.