Global smartphone sales drop 6 per cent due to rising component costs
Global smartphone sales in the second quarter of 2026 recorded a 6 per cent decrease compared to the same period last year, amidst a memory supply crisis and rising component costs. According to a report from Engadget on Thursday, data from technology industry analyst Omdia shows that smartphone sales in Q2 2026 reached 272 million units.
Omdia noted that the sluggish smartphone market is facing additional pressure due to supply chain disruptions, which are expected to continue until at least the end of 2026. Global smartphone shipments have been on a downward trend since late 2025.
Brands operating in the affordable price segment were the most affected, specifically Xiaomi and Oppo. Xiaomi’s smartphone shipments fell by 26 per cent compared to the previous year, while Oppo recorded a 17 per cent decline. According to Omdia, price increases in several markets and the simplification of product portfolios were factors contributing to this decline. The agency also predicts that low-end smartphones will experience the largest price hikes in the coming months.
In contrast, Samsung recorded a slight increase, with sales reaching 60.5 million units in Q2 2026, raising its market share to 22 per cent. This achievement came despite Samsung’s mobile division recording its first quarterly loss due to pressure on operating profits triggered by rising production costs. However, Omdia assessed that Samsung’s semiconductor business, particularly memory and storage, experienced significant growth due to high demand from the artificial intelligence (AI) industry, leading the company to record its highest quarterly revenue in history during this period.
Meanwhile, Apple achieved its best Q2 performance, with shipments of 55.1 million units, representing a 23 per cent year-on-year increase. The company’s market share also rose to 20 per cent. Omdia identified the iPhone 17 series as one of the primary drivers of Apple’s growth in 2026, noting that the company has been able to maintain iPhone pricing even as many other manufacturers have begun raising their product prices.
According to Omdia, smartphone manufacturers capable of integrating pricing strategies, supply chain resilience, and innovation in commercial strategies are likely to achieve better performance throughout the remainder of 2026.