As suppliers prioritize AI data center demand over consumer electronics, the resulting shortage of DRAM and NAND components has forced manufacturers to raise prices, particularly impacting the cost-sensitive entry and mid-tier segments.
Despite the broader market decline, Samsung reclaimed the top global position with a 24% market share.
The company’s growth was supported by the successful launch of the Galaxy S26 series and aggressive promotions in key regions like India and the Middle East.
Apple also saw gains, reaching a record 20% second-quarter market share as demand for its premium iPhone lineup remained resilient.
In contrast, Xiaomi, OPPO, and vivo recorded double-digit declines, as their heavy exposure to mid-range devices made them more vulnerable to rising production costs.
The outlook for the remainder of 2026 remains challenging, with total annual shipments expected to decline by 14%.
Analysts suggest that the memory shortage may persist into 2027, forcing manufacturers to prioritize high-value premium models and AI-integrated features over high-volume, low-margin devices.
While brands like Google and Huawei have shown growth, a full market recovery is unlikely until component supply conditions and global consumer sentiment improve.