[REVISION HISTORY]

Global smartphone market shifts toward premium models

43 recorded revisions of this situation.

What changed

2026-10-17 18:34 UTC → 2026-11-03 15:40 UTC · added ~~removed~~

Global smartphone market ~~declines amid memory chip crisis~~ shifts toward premium models

The global smartphone market is ~~experiencing~~ undergoing a ~~significant downturn, with projections for 2026 shipment declines ranging from 14.3 percent to 16.7 percent. This contraction is primarily~~ structural shift toward premiumization, driven by a severe ~~shortage and price surge in~~ memory ~~components, specifically~~ component crisis. Rising costs for NAND and DRAM, ~~which have seen costs increase by over 300 percent year-on-year as capacity is diverted to AI data centers. Consequently, the average selling price is expected~~ often referred to ~~rise by 27.6 percent~~ as ‘RAMageddon’, are forcing manufacturers to ~~$581,~~ increase prices, signaling the end of the budget-friendly ~~era as manufacturers prioritize profitability. Market dynamics show a sharp shift toward premiumization.~~ era. While shipment volumes are projected to contract, the ~~entry-level segment~~ total market value is suffering—with Android shipments for devices under $100 dropping nearly 60 percent in Q2 2026—the premium segment remains resilient. In Southeast Asia, shipments for devices priced between $500 and $699 grew by 74 percent in Q2 2026. Similarly, in the Middle East, shipments for devices above $800 were driven expected to rise due to significantly higher average selling prices. Market leadership is characterized by ~~Apple’s popularity. Apple and~~ a tightening duopoly between Samsung ~~continue to dominate.~~ and Apple. In ~~Q2 2026, they collectively accounted for 26 percent~~ the first half of 2026, Samsung secured the top global ~~unit sales,~~ position with a 22 percent market share, followed closely by Apple at 21 percent. While the iPhone 17 ~~emerging~~ emerged as the world’s best-selling ~~smartphone. In Europe, Apple and~~ model, Samsung ~~together control approximately 68 percent of the market.~~ has seen success with its premium Galaxy S26 Ultra and foldable Z Fold8 series. Notably, Apple has overtaken Samsung in the European mobile operator channel, where contract-based sales for high-end models have proven more resilient than the open ~~retail.~~ retail market. Regional dynamics show significant variation. In China, Huawei has seen a resurgence, reaching a 23 percent market share by Q2 2026 due to the return of Kirin chips. In Vietnam, Samsung has significantly closed the sales gap with Apple on major e-commerce platforms during Q3 2026. As manufacturers prioritize high-margin, AI-capable hardware, the entry-level segment is shrinking. This includes Samsung reducing production of its budget-friendly Galaxy A series by approximately 20 percent for Q4 2026. Consequently, the refurbished market is growing as consumers seek more affordable ways to access premium technology.

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