Tech companies worldwide have raised handset prices over recent months. Although not all firms issued statements, multiple reports indicate that the persistent shortage of memory and storage parts has pushed up manufacturing expenses. Component suppliers have shifted DRAM and NAND supplies toward AI data centers. A new market research report states that smartphone shipments dropped notably in the second quarter of 2026 due to this memory crisis. While the broader industry declined, Samsung and Apple increased their market shares and secured the top two positions.

Global Phone Shipments Declined Due to the Ongoing Memory Crisis

According to the latest report from Omdia, worldwide shipments fell 4 percent in Q2 2026. The analysis notes that the memory and storage shortage disrupted supply chains and increased component costs.

The current situation has produced severe market polarization, with clear differences in how vendors respond based on their priorities, scale, price focus, and target customers, Omdia states.

Despite the industry-wide drop, Samsung and Apple grew their shares while Chinese rivals did not. Samsung held the leading position with 22 percent market share in Q2 2026. Shipments from the South Korean firm rose 2 percent from the same quarter a year earlier.

The report credits resilient demand and reliable supply availability for this result. The delayed Samsung Galaxy S26 series also shifted some demand into Q2 2026. Samsung advanced in the budget segment as Chinese competitors adopted a more cautious approach.

Apple secured second place with 20 percent market share in Q2 2026. The company achieved the largest gain, increasing its share by 4 percentage points from 16 percent in Q2 2025.

This marks the iPhone maker's strongest Q2 performance to date, driven by solid iPhone 17 series sales and upgrade activity. Apple also benefited from stable pricing while competitors raised their prices.

The leading Chinese smartphone vendors faced weaker results in Q2 2026. Xiaomi ranked third with 11 percent market share, including Poco and Redmi shipments, down from 15 percent in Q2 2025.

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Oppo placed fourth with 10 percent market share, including Realme and OnePlus shipments, marking a 2 percent decline. Vivo and iQOO together fell to 8 percent in Q2 2026 from 9 percent in the prior year.