Omdia said global smartphone shipments fell 20% year-on-year to 254.7 million units in 3Q26, the lowest third-quarter total since 2013. Rising smartphone prices weighed on consumer demand, particularly in emerging markets. Distributors and retailers were also cautious about replenishing inventory before the holiday season as higher device costs increased working capital requirements and limited stocking volumes.
Samsung remained the largest smartphone vendor, shipping 57.8 million units, down 5% year-on-year. Apple shipped 56.5 million iPhones, flat year-on-year, while Xiaomi shipped 30.7 million units, down 29%. OPPO, including realme and OnePlus, ranked fourth with 23.4 million units, down 39%; vivo ranked fifth with 19.3 million units, down 33%.
Omdia Principal Analyst Sanyam Chaurasia said emerging markets faced the greatest pressure from rising prices. Africa recorded the steepest contraction, at 39% year-on-year, while APAC excluding Greater China, the Middle East and Latin America each declined by more than 20%. Currency depreciation, inflation and rising living costs weakened purchasing power, prompting consumers to delay upgrades or switch to refurbished smartphones. In some lower-income markets, consumers opted for feature phones.
Vendors are prioritizing profitable markets and core product portfolios amid constrained component supply. Omdia said they are adjusting RAM and storage configurations, reducing SKUs and selectively absorbing higher costs, while expanding higher-value portfolios to protect profitability.
Omdia expects global smartphone shipments to decline 12% in 2026, with further price increases and limited room for promotional discounts weighing on holiday demand. It expects the market to decline further in 2027, although at a slower pace, as high-bandwidth memory (HBM) shortages and constraints on conventional memory supply keep costs elevated. Omdia said strong balance sheets, lean inventories and operational efficiency will become key competitive differentiators for vendors and channel partners.
