Why Smartphone Shipments Dropped
Analytical agency Omdia recorded a 6% year-on-year decline in global smartphone shipments in the second quarter of 2026. The total market volume stood at 272 million units. This drop interrupted a period of recovery observed in previous quarters.
Experts point to a significant increase in prices for key components, particularly DRAM and NAND memory chips, as the primary cause of the negative dynamic. This price hike hit the budget and mid-range device segments hardest, forcing manufacturers to revise their launch and pricing plans. Supply chain logistics and inventory management also became more challenging due to unpredictable fluctuations in component prices.
Positions of Market Leaders
Despite the overall market decline, industry leaders – Apple and Samsung – were able not only to hold their positions but also to strengthen them slightly. Their advantage lies in controlling their own supply chains and a high proportion of premium models in their portfolios. Demand for expensive smartphones remains stable, allowing these companies to offset rising manufacturing costs. They also have better negotiating power with component suppliers.
Impact on Chinese Manufacturers
Chinese manufacturers, such as Xiaomi, Oppo, and Vivo, which rely heavily on the mid-range segment, were most affected by the memory shortage and price increases. They were forced either to raise prices on their devices, reducing their appeal to buyers, or to cut production volumes to avoid losses. This led to a loss of market share to the leaders.
The change in market conditions is forcing all players to rethink their strategies. There will be a greater emphasis on cost optimization, finding new suppliers, and developing in-house technologies. Competition in the premium segment is also expected to intensify, as it remains more resilient to crisis phenomena.
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