Omdia's Q2 2026 report shows the global smartphone market slipped 4% year‑on‑year, blaming a persistent memory shortage and semiconductor bottlenecks. While most vendors saw declines, Samsung and Apple posted gains, holding 22% and 20% market share respectively – Samsung up 2% and Apple up 4% from Q2 2025. Analyst Runar Bjorhovde warns the downturn could deepen over the next two quarters as holiday demand meets constrained chip supply.

Budget phones are hit hardest, with an expected 22% plunge in share for devices under $400, pushing manufacturers toward higher‑priced models that can better absorb cost pressures. The report also notes that rising memory prices may not fall until early 2027, according to Omdia manager Le Xuan Chiew, leaving consumers wary of future price drops. Despite the bleak outlook, Samsung’s delayed Galaxy S26 launch and Apple’s price hikes helped them defy the trend, though their momentum may be short‑lived.