Samsung has reclaimed its position as the world’s largest smartphone manufacturer after overtaking Apple in global shipments during the second quarter of 2026, despite the smartphone industry recording its weakest April-to-June performance in 13 years.
Preliminary industry estimates show global smartphone shipments fell by 11 per cent year-on-year in the second quarter, reaching their lowest level for the period since 2013. The slowdown has been largely attributed to an ongoing shortage of DRAM and NAND memory chips, which has increased production costs as semiconductor manufacturers prioritise artificial intelligence infrastructure over consumer electronics.
Samsung secured a 24 per cent share of the global smartphone market during the quarter, recovering the top position after trailing Apple in the first quarter of the year. Brandspur Brand News reports that the South Korean technology giant benefited from strong demand for its Galaxy S26 series, improved product availability and relatively stable pricing across key markets, including India and the Middle East.
Apple retained strong momentum despite losing the top spot, increasing its shipments by three per cent year-on-year to capture a 20 per cent market share. The company also maintained stable pricing for its latest iPhone lineup during a period when many manufacturers faced rising component costs.
The broader smartphone market, however, remained under pressure. Xiaomi, OPPO and vivo all recorded double-digit shipment declines as higher memory prices squeezed profit margins, particularly within the budget and mid-range smartphone segments where manufacturers have limited room to absorb additional production costs.
Industry analysts expect the semiconductor supply constraints to continue into 2027, with global smartphone shipments forecast to decline by about 14 per cent over the full year. Manufacturers are increasingly focusing on premium devices that offer stronger margins while reducing emphasis on lower-priced models.
For consumers, particularly in emerging markets where affordable smartphones account for a significant share of demand, the market shift could result in higher retail prices and fewer entry-level device options as the global expansion of artificial intelligence continues to reshape semiconductor production priorities.
