Global smartphone shipments declined by 7% in Q2 compared to Q2 of 2025, according to an FDM CCS Insight report. The drop followed a 3% decrease from Q1 of this year, with FDM forecasting a 12% decline in global shipments for 2026. Developed markets like Europe and North America saw low single-digit declines, while emerging markets experienced steeper drops due to heightened price sensitivity.

The secondary market showed resilience, with second-hand phone sales growing 3% year-over-year and projected to reach 9% growth for the full year. Buyers are increasingly opting for affordable refurbished devices over new ones, driven by rising costs. New smartphones became 13% more expensive in Q2 than in Q1 due to a global memory shortage, and FDM expects prices to keep climbing in the second half of 2026.

Despite strong demand, the refurbished market faces challenges. Fewer trade-ins in the US are limiting device supply, though exports from China and Japan help offset the shortage. Rising demand and constrained supply are gradually increasing refurbished phone prices as well.