Omdia: Global smartphone market down 4% in 2Q26 while Apple and Samsung soared

Global smartphone shipments dropped 4% in the second quarter of 2026. Data from Omdia points to a persistent memory crisis as the primary driver for this decline. This supply disruption has spiked component costs across the industry, forcing manufacturers to fundamentally change how they approach production and retail pricing.

Market polarization defines the current landscape. While many vendors struggle with the rising price of memory and storage, Samsung and Apple managed to grow their shipments and expand market share. Samsung maintained its lead with a 22% share, aided by strong demand and the timing of its latest hardware releases. Apple hit a record for a second-quarter performance, securing a 20% market share behind the momentum of the iPhone 17 series.

Companies in the mass-market segment face a tougher reality. Manufacturers producing phones under $400 deal with the tightest profit margins and the most intense price sensitivity. As memory costs remain elevated—sometimes five times higher than they were a year ago—many companies now reduce their product lines and raise device prices to protect their bottom lines.

Analysts do not expect immediate relief. Memory price corrections likely remain distant, with no significant drops anticipated until at least the second half of 2027. This forces a shift in strategy. Instead of focusing on sheer volume, major players are reorienting toward value-driven segments and higher-priced devices. This creates a difficult environment for budget-conscious consumers who may find fewer affordable options on the market.

Looking ahead, the next two quarters represent a critical period. Seasonal demand from holiday shopping and new product launches will collide with restricted chip supply. Experts predict further volume declines as vendors prioritize high-end segments to maintain revenue. Consumers may rely more on refurbished devices or delay their upgrade cycles entirely as the market navigates this period of high component costs.