Global smartphone sales drop 6% to 272M units amid memory crisis

Global smartphone sales fell 6% year-on-year to 272 million units in the second quarter of 2026, extending a decline that began in late 2025, according to an Omdia report released on July 30. An ongoing memory crisis and rising component costs are driving the slump, with supply chain disruptions expected to persist at least through the end of 2026.

Budget brands bore the brunt. Xiaomi’s shipments plunged 26% from a year earlier, while Oppo’s dropped 17%, hurt by forced price increases and a slimmer product lineup. Omdia projects that low-end phones will see the steepest price hikes over the rest of 2026.

Samsung and Apple, however, increased their market share. Samsung shipped 60.5 million units, a slight year-on-year rise that lifted its share to 22%. That gain came even as its mobile division posted its first-ever quarterly loss, squeezed by higher costs. Samsung’s overall revenue reached an all-time high for a second quarter, boosted by surging sales of memory and storage to AI firms.

Apple delivered its strongest second quarter, shipping 55.1 million iPhones, up 23% from a year earlier, and expanding its market share to 20%. The iPhone 17 sold particularly well, and Apple kept phone prices steady while raising them elsewhere.

For the next iPhone generation, Apple is expected to split its launches: the pricier Pro and Ultra models in fall 2026, and the standard iPhone 18, 18e, and iPhone Air 2 in spring 2027. The company also introduced a revamped upgrade program in July 2026.

Omdia predicts that manufacturers blending pricing power, supply-chain resilience, and innovative commercial strategies will fare best in the remaining half of 2026.