Global smartphone shipments fell 6% to 272 million units in the second quarter of the year. A market study by Omdia reveals that soaring memory prices and component shortages forced brands to prioritize profit margins over sales volume. But while most manufacturers saw steep declines, Apple and Samsung managed to grow their market share.
Samsung held its ground as the largest global vendor by shipping 60.5 million units to secure a 22% market share. The company used its own memory production lines to bypass the supply shortages that crippled other brands. Apple followed closely in 2nd place, shipping 55.1 million units to capture a record 20% of the market. Retail partners aggressively stocked up on the base iPhone 17 model to beat anticipated autumn price hikes for the next generation of devices.
Budget brands suffered the worst consequences of the component cost spike. Xiaomi remained in 3rd place with 31.2 million units shipments, representing a massive 26% plunge. Because more than half of its catalog is priced under 200 dollars, the brand could not absorb the memory price increases. Oppo took 4th place with 28.4 million units shipments after trimming its product lineup, and Vivo finished 5th with 21.5 million units shipments.
The current cost cycle is forcing a permanent change in how mobile brands set their retail prices. Research Manager Le Xuan Chiew stated that the market is undergoing a fundamental shift. In his words, the current memory cost cycle is driving a structural repricing of the industry, creating a lasting shift in how vendors compete on pricing, profitability and product positioning.
Looking ahead, Omdia warns that relief is not coming soon. Practice Leader Amber Liu stated that smartphone shipments are expected to continue declining over the next 2 quarters amid persistent cost pressures.
She explained that the ultimate winners will be the brands that combine pricing power and supply chain stability to navigate the market reset.
