Global smartphone sales fall six percent amid memory cost crisis
A new Omdia report reveals global smartphone shipments dropped 6% year-on-year to 272 million units in Q2 2026, driven by the ongoing memory crisis and rising component costs. Low-end brands like Xiaomi and Oppo were hit hardest, while Apple and Samsung increased market share.
According to a new report from technology analyst group Omdia, global smartphone sales fell six percent year-over-year to 272 million units in the second quarter of 2026. An already stagnating market is now grappling with the ongoing memory crisis and rising component costs, with supply chain disruptions expected to persist at least through the remainder of 2026 and likely beyond.
While a six percent decline may not seem dramatic on paper, Omdia's research shows that worldwide smartphone shipments have been steadily declining since the end of 2025. Traditionally cheaper brands have been hit the hardest: Xiaomi's shipments dropped 26% year-over-year and Oppo's fell 17%, driven by forced price increases in certain markets and a downsized product portfolio. Low-end smartphone prices are expected to see the most significant hikes in the coming months.
At the high end, Samsung sold 60.5 million units, a slight year-over-year increase, boosting its market share to 22%. This came despite its mobile division posting its first-ever loss in the second fiscal quarter, attributed to rising operating costs. However, as Samsung also manufactures memory and storage components heavily sought after by AI companies, its sales in that sector surged, leading to an all-time high in quarterly revenue for Q2 2026.
Apple recorded its strongest-ever second quarter, shipping 55.1 million units—up 23% year-over-year—and growing its market share to 20%. The iPhone 17 has been a particularly strong seller, and Apple has so far avoided raising prices on its phones, unlike most of its other product categories. Apple is expected to split the iPhone 18 launch into two windows: the pricier Pro and Ultra models in the traditional fall period, followed by the standard iPhone 18, 18e, and iPhone Air 2 in spring 2027. This week, Apple also unveiled a revamped upgrade program. Omdia predicts that smartphone manufacturers combining pricing power, supply chain resilience, and innovative commercial strategies will fare best in the remaining two quarters of 2026.
