Global smartphone shipments fell 7% due to rising memory costs
In the second quarter of 2026, global shipments of new smartphones decreased by 7% compared to the same period last year. Rising costs of memory and other components are forcing manufacturers to raise prices, which weakens consumer demand.
This is evidenced by the results of a study by the analytical company FDM CCS Insight. The negative trend has continued for the second consecutive quarter: smartphone manufacturers continue to feel the consequences of memory shortages and rising semiconductor prices.
Companies are trying to secure necessary components in advance and are increasing warehouse stocks, anticipating further price increases in the second half of the year. At the same time, such actions intensify competition for available chip batches.
Smartphones rose in price by 13% in a quarter
The average selling price of a smartphone in the second quarter increased by 13% compared to the previous three months. This is connected not only with increased production costs, but also with a change in market structure: manufacturers are reducing the number of inexpensive models and concentrating on mid-range and premium segment devices.
According to an updated forecast by FDM CCS Insight, over the whole of 2026, the global primary smartphone market could shrink by 12%. Analysts expect that the memory chip shortage will last at least until 2028, so the price pressure on manufacturers and buyers will persist.
In the first half of the year, the market turned out to be more resilient than previously forecast. However, in the second half of the year, the situation may worsen due to new price increases, limited memory supplies, and postponed purchases by consumers.
Apple so far holds prices
Most major manufacturers have already increased the cost of their devices. Apple maintained relatively stable prices in the first half of the year, but analysts expect that in the coming months the company will also feel increased pressure from component suppliers.
The narrowing price gap between Android smartphones and iPhones could play in favor of Apple. Some buyers who previously did not consider iPhone due to its higher cost may switch to the company's ecosystem if competitors' prices continue to rise.
At the same time, the supply of entry-level smartphones is shrinking. Because of this, buyers often have to pay more for devices with characteristics inferior to models of previous generations in the same price category.
The largest drop was recorded in emerging markets
In North America and Europe, the decline in shipments was relatively moderate thanks to stable demand for expensive smartphones. Buyers in these regions more often use installment plans, mobile operator contracts, and trade-in programs for old devices.
In emerging markets, the drop was much more pronounced. The price increases had a stronger impact on the purchasing power of consumers, who began to postpone upgrading smartphones, choose cheaper models, or switch to used devices.
Analysts believe that financing, rental, buyback, and trade-in programs for old equipment will become important tools for maintaining sales. Without such mechanisms, the accessibility of new smartphones will continue to decline.
The refurbished smartphone market continued to grow
The organized refurbished smartphone segment, which includes devices with professional diagnostics, data erasure, and warranty service, grew by 3% in the second quarter year-over-year.
Growth was slower than expected due to a shortage of used devices for further refurbishment. In the US, the activity of trade-in programs decreased, so fewer smartphones enter the secondary market. The deficit was partially compensated by supplies from China and Japan.
Demand for refurbished devices is also increasing in developing countries. At the same time, expansion of this segment is constrained by import restrictions on used electronics that are in effect in a number of countries.
FDM CCS Insight expects that by the end of 2026, the organized secondary smartphone market will grow by 9%. The forecast was lowered due to supply problems, but the segment's long-term prospects remain positive: the more expensive new devices become, the more buyers consider refurbished models as a more affordable alternative.
Based on materials: New Electronics, FDM CCS Insight
