The global smartphone market is experiencing significant challenges as of the second quarter of 2026. According to Omdia, worldwide smartphone shipments fell by 6% year-over-year, reaching 272 million units, primarily due to rising memory and component costs.
Samsung and Apple Defy Market Trends
In this challenging market environment, two tech giants, Samsung and Apple, have managed to thrive. Together, they dominate the market, holding a combined share of 42%. While other manufacturers struggle, Samsung has maintained its position as the world's largest smartphone vendor.
Samsung's Performance
Samsung shipped 60.5 million smartphones, reflecting a 5% increase compared to the same period last year, securing 22% of the global market share. The company's integrated memory business has allowed it to navigate supply shortages more effectively than many competitors. Additionally, the delayed launch of the Galaxy S26 shifted some demand for premium devices into the second quarter, further boosting Samsung's position in the entry-level market as several Chinese vendors scaled back their product lines and increased prices.
Apple's Growth
Apple followed closely, shipping 55.1 million units, a remarkable 23% year-over-year increase, marking the best second quarter performance in the company's history. With a market share of 20%, Apple experienced this growth during a traditionally weaker quarter. Retail partners have reportedly increased their stock of iPhone 17 to prepare for anticipated price hikes and the launch of the more premium iPhone 18. Although iPhone prices have remained relatively stable, adjustments in various Apple product categories suggest potential price increases by the end of 2026.
Challenges for Chinese Vendors
In contrast to the success of Samsung and Apple, many Chinese smartphone vendors faced significant declines in shipments. Xiaomi, for instance, ranked third with shipments of 31.2 million units, plummeting by 26% year-over-year. Over half of Xiaomi's shipments consist of smartphones priced under $200, making it particularly vulnerable to the rising memory costs, especially in developing markets in Asia-Pacific and Latin America. Oppo, which includes brands like realme and OnePlus, ranked fourth, delivering 28.4 million units, a decrease of 17%. The company is currently streamlining its product portfolio and reducing the number of entry-level models to enhance profitability. Vivo rounded out the top five with shipments of 21.5 million units, an 18% drop from the previous year.
Regional Market Disruptions
Regional disruptions have also been noted, particularly in the Middle East, where smartphone shipments fell by 18% due to geopolitical tensions impacting supply chains and retail activities. Omdia anticipates that these disruptions will be temporary, with conditions stabilizing in the second half of 2026.
Future Outlook for the Smartphone Industry
Omdia predicts that the first half of 2026 marks the beginning of significant changes within the smartphone industry. The rising costs of memory, storage, and application processors are leading vendors to shift their focus from merely pursuing sales volume to prioritizing profit margins and average selling prices (ASP). Some of these increased component costs are being passed on to consumers, while the number of entry-level products is decreasing, with a shift in focus toward the mid-range and premium segments. This strategy is helping the industry's revenue remain relatively stable, despite a decline in the number of devices shipped. Higher prices are also starting to reshape consumer expectations, paving the way for an increase in ASP in the long term.
However, pressure from component costs is expected to linger in the market until the end of 2026. While the decline in shipments may slow, a broad recovery in volume is not anticipated until component costs decrease. Vendors are likely to implement more financing programs, trade-in offers, bundling, and subscription services to maintain product affordability. They will also adopt stricter inventory management practices and reduce unprofitable products.
Despite seasonal boosts from flagship launches, holiday promotions, and shopping festivals, smartphone shipments are projected to continue declining over the next two quarters due to ongoing cost pressures. According to Omdia's Practice Leader Amber Liu, vendors with strong pricing power, robust supply chains, and innovative commercial strategies will emerge as the winners. This situation marks a new era where profitability is prioritized over mere sales volume.
Source: https://inet.detik.com/consumer/d-8598025/pasar-hp-dunia-turun-6-samsung-dan-apple-malesat
