Global smartphone market slumps 4% in Q2, but Apple and Samsung defy trend

The global smartphone market experienced a 4% year-on-year decline in the second quarter of 2026, as the ongoing memory supply crisis continues to drive up component costs and disrupt the industry.

According to new research from Omdia, the challenging environment has caused severe market polarisation, rewarding vendors with the scale and strategy to navigate supply bottlenecks while penalising those dependent on the struggling mass-market segment.

Despite the industry-wide downturn, market leaders Samsung and Apple managed to buck the trend, both reporting growth. Samsung retained its top position with a 22% market share, bolstered by strong supply availability and a boost in premium demand following the delayed launch of the Galaxy S26 series.

Meanwhile, Apple achieved its best-ever second-quarter performance, capturing 20% of the market. The success of the iPhone 17 series allowed Apple to maintain stable pricing while competitors were forced to hike costs to offset inflationary pressures.

The remainder of the top five – Xiaomi, OPPO, and vivo – faced a tougher landscape as demand for sub-$400 devices plummeted. These players are currently undergoing portfolio restructuring to prioritise value over sheer volume.

“The steepest volume drops hit the sub-$400 mass market segment, where supply constraints are tightest,” said Omdia Principal Analyst Runar Bjorhovde. He noted that memory and storage costs now account for over 60% of the bill-of-materials for budget devices.

With memory prices not expected to normalise until at least the second half of 2027, analysts warn that these shifts are not merely temporary. As vendors focus on high-end segments to protect margins, consumers are being squeezed. Many budget-conscious buyers are now expected to delay their purchases, seek financing, or turn to the refurbished market as the industry enters a challenging second half of the year.