Global smartphone shipments declined by 6% in the second quarter of 2026, driven by persistent memory shortages and escalating component costs, reshaping the competitive landscape and consumer choices.
Global smartphone shipments fell 6% year on year to 272 million units in the second quarter of 2026, according to Omdia, as persistent memory shortages and higher component costs forced manufacturers to rethink pricing, product line-ups and supply-chain strategy. The research firm said the market had been pulled forward in the first quarter by early buying, before entering a correction phase as the cost of memory, storage and application processors continued to rise.
Omdia said the result has been a more polarised market, where scale, supply-chain resilience and pricing power matter more than ever. Samsung stayed the largest vendor, shipping 60.5 million phones and lifting its share to 22%, helped by its vertically integrated memory business and a delayed Galaxy S26 launch that shifted premium demand into the quarter. Apple posted its strongest second quarter on record, with 55.1 million iPhones shipped and a 20% share, as distributors built inventories of the base iPhone 17 ahead of expected price rises and anticipation grew that the iPhone 18 range would arrive at a higher starting price.
The sharpest pressure fell on lower-priced brands. Xiaomi remained third with 31.2 million shipments, but volumes dropped 26% from a year earlier, leaving it the most exposed among the top five to memory inflation because more than half of its phones sell for under $200. Omdia said demand was especially weak in emerging markets across Asia-Pacific and Latin America, where price increases hit entry-level buyers hardest. OPPO, including realme and OnePlus, shipped 28.4 million units, down 17%, after streamlining its portfolio and cutting low-end variants, while Vivo fell 18% to 21.5 million units.
The second quarter setback followed warnings earlier in the year that 2026 would be a difficult period for the industry. Omdia had forecast a 7% decline in full-year shipments in March, blaming tightening memory supply and higher prices, and in January it projected the first annual fall in smartphone AMOLED panel shipments in four years for the same reason. Industry analysts have separately noted that memory shortages were already weighing on the first quarter, when shipments also slipped 6% year on year.
Omdia said the first half of 2026 marked a supply-driven reset for the smartphone market, with vendors shifting away from volume growth and towards protecting margins and average selling prices. The company expects shipments to remain under pressure through the rest of the year as elevated memory costs continue to limit supply and keep device prices high, although it sees some easing in the pace of declines. It also warned that regional shocks, including an 18% fall in shipments in the Middle East because of geopolitical tensions, could add further volatility even if those disruptions prove temporary.
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