TechCapsules

AI-summarised brief · reviewed before publication

Omdia reports a 4% year-on-year decline in the global smartphone market for Q2 2026, attributing the drop primarily to an ongoing memory chip shortage. Despite the overall contraction, Samsung and Apple emerged as the only major vendors with growth. Samsung secured the top market position with a 22% share, up 2% from the previous year, driven by resilient demand and delayed Galaxy S26 launches. Apple followed in second place with a 20% share, marking a 4% increase. Analysts warn that the situation will likely worsen during the upcoming holiday season, as seasonal demand peaks collide with constrained supply. Semiconductor bottlenecks are further exacerbating cost pressures. Budget devices are projected to suffer the most, with market share expected to plummet by 22%. Consequently, manufacturers are shifting focus toward higher-priced devices, which offer more flexibility in component substitution to mitigate rising memory costs. While memory prices may stabilize in early 2027, consumer prices are unlikely to return to 2025 levels, sustaining market polarization.