Global smartphone shipments fell by 20 per cent in the third quarter of 2026 to 254.7 million devices. That is the lowest level for a third quarter since 2013. Higher prices are dampening demand, particularly in emerging markets. Of the five largest manufacturers, only Apple maintained its volume.
That is according to figures from research firm Omdia. The firm says distributors and retailers are also holding back, restocking cautiously ahead of the holiday season. More expensive devices require more working capital, which means they can buy in less stock.
Samsung and Apple hold volume steady
Samsung remained the largest manufacturer with 57.8 million devices shipped, 5 per cent fewer than a year earlier. Omdia attributes this to the Galaxy A series in the entry-level and mid-range segments. Other Android brands were hampered by memory shortages and higher prices. In August, Samsung launched the Galaxy Z8 series, which the company backed in the premium segment with trade-in and upgrade programmes.
Apple shipped 56.5 million iPhones, the same as a year earlier. According to Omdia, demand in China and North America offset weakness in key emerging markets. The iPhone 17 sold well and the channel was stocked up in advance because of expected price increases. In September, Apple unveiled the iPhone 18 Pro, the iPhone 18 Pro Max and its first foldable device, the iPhone Duo. The standard iPhone 18 has been pushed back to 2027. As a result, the iPhone 17’s sales cycle will run for longer and new demand during the holiday period will shift towards more expensive models.
Chinese brands ship significantly less
Xiaomi remained in third place with 30.7 million devices, a decline of 29 per cent. Shipments fell by 20 per cent in China and by 28 per cent in India. The company repeatedly adjusted its prices due to rising component costs and prioritised margin over volume. OPPO, including realme and OnePlus, finished fourth with 23.4 million devices, 39 per cent fewer than last year. Vivo followed with 19.3 million devices, a decline of 33 per cent. Both manufacturers raised their prices in their core markets, which according to Omdia is making inventory planning in sales channels more difficult.
Emerging markets were hit hardest. Africa shrank by 39 per cent as manufacturers shifted their focus to margin and selective shipments. Asia-Pacific excluding Greater China, the Middle East and Latin America each fell by more than 20 per cent. Currency depreciation, inflation and a higher cost of living are squeezing purchasing power. Consumers are postponing purchases, opting for refurbished devices or, in some countries, switching to feature phones. North America held up better thanks to a market with a high share of expensive devices, financing schemes and trade-in programmes from telecoms operators.
Further contraction expected in 2027
Omdia expects smartphone shipments to fall by 12 per cent over the whole of 2026. The firm says further price increases and little room for discounts will dampen demand during the holiday period. Manufacturers face inventory risks as they have to balance existing stock with new generations of devices. According to Omdia, telecoms operators and large retail chains are better able than independent retailers to absorb higher prices and the associated financing requirements. Independent retailers are dealing with slower stock rotation and shrinking margins, which may cause some to exit the market sooner.
For 2027, the firm forecasts a further decline, but at a slower pace. Shortages of high-bandwidth memory and limited availability of conventional memory are keeping component costs high. Omdia expects manufacturers to cut sales, retail and marketing costs and to look for more revenue from software, services and after-sales offerings. According to the firm, healthy balance sheets, low inventories and efficient operations will become important competitive advantages for manufacturers and their trade partners.
This article was originally published in Dutch on MSP Business. Read the original →
