What you need to know
- A recent Omdia research report says that Q2 2026 brought a 4% decline in the global smartphone market, blaming the memory crunch.
- Samsung and Apple saw growth of 2% and 4%, respectively, while the others tended to decline.
- Omdia’s researchers suspect the phone market will continue to decline even during the busier holiday season later this year.
- Budget phones are also expected to take a big hit with a 22% drop in market share.
Research data is in for the second quarter, and while the market is down, there are two bright stars.
Today (July 13), Omdia shared data on how the smartphone market performed in Q2 2026. According to its research, the handset market shrank by 4% year-on-year, and Omdia points the finger at the ongoing memory shortage for the decline. His analysis states: “Current dynamics have created severe market polarization, reflecting stark differences in mitigation strategies that vary according to vendor priorities, scale, price range focus and core audience demographics.”
Despite this decline, Omdia says that Samsung and apple won the place and is in the first place. Samsung is reported to have 22% of the market share, which is a 2% increase from Q2 2025. The post says this is due to his “persistent demand” and delayed submission. Galaxy S26 series. In second place comes Apple with 20% market share (up 4%). However, Omdia raises two key points: Q2 is typically a slow period for Apple, but the company raised prices for its other devices.
There are questions about whether this will affect their iPhones later this year. While Samsung and Apple were the only two companies to see volume growth in Q2, Runar Bjorhovde, senior analyst at Omdia, says that this may not continue. “We expect the sharpest volume declines in the next two quarters, where normal seasonal demand peaks – driven by new releases, holidays and shopping festivals – collide with limited memory chip supply,” says Bjorhovde.
And it’s not the lack of storage that’s stressing companies out the most. Bjorhovde says that “semiconductor bottlenecks like foundries” also cause cost problems.
Looking for better times
The phone market has not been the best in years. 2026 first quarter report He saw the US market fall at 3% p.a. It said that while lack of memory and storage costs were significant culprits, there were also “limited carrier improvements.” Samsung and Apple were also highlighted earlier this year. Samsung still leads Android downloads with 24% of the market, although it’s down 5% year-over-year. On the other hand, Apple was down 3% but dominated by 60%.
Motorola was the surprise in the first quarter. While everyone else was struggling, Motorola saw 18% growth earlier this year.
says a recent research report published by Omdia doesn’t look good for budget phones. More cost-effectively deployed devices could be the hardest hit, thanks to the pressure companies are feeling from rising memory prices. The budget phone market may decrease by 22%. It’s a grim future for phones under $400. With that, Omdia thinks devices priced at $400 or more could be where companies turn next.
The reason is related to the materials. Omdia says higher-priced phones usually give more leeway in what a company can change to cut costs.
Android Central’s Take
Prices are everything in the market. No one wants to burn a hole in their pocket. This is an issue raised by Omdia in its research. Le Xuan Chiew, Omdia’s research manager, said memory prices may drop in early 2027, but there’s a chance consumers won’t see market prices anywhere near 2025 levels. We have seen how it bothers consumers they caused him to buy a phone now, not later. I can only hope things get better.
