Global smartphone shipments fell 20% year-on-year to 254.7 million units in the third quarter of 2026, according to Omdia, marking the lowest third-quarter shipment volume since 2013. Rising smartphone prices continued to weigh on consumer demand, particularly in emerging markets.

Distributors and retailers also stayed cautious about replenishing inventory ahead of the holiday season, as higher device costs increased working capital requirements and limited stocking volumes.

Vendors across the board saw steep declines, with Samsung down 5%, Xiaomi down 29%, OPPO down 39% and vivo down 33% year-on-year.

Samsung retained its position as the world's largest smartphone vendor, shipping 57.8 million units, down just 5% year-on-year.

Its entry- and mid-range Galaxy A series kept it competitive as rival Android brands faced memory supply constraints, and the August launch of the Galaxy Z8 series strengthened its premium position.

Apple shipped 56.5 million iPhones, flat year-on-year despite the downturn, with resilient demand in China and North America offsetting emerging-market weakness.

In September, Apple introduced the iPhone 18 Pro, iPhone 18 Pro Max and its first foldable model, the iPhone Duo, while deferring the base iPhone 18 to 2027.

Omdia principal analyst Sanyam Chaurasia said emerging markets, once the backbone of global smartphone volume growth, now face the greatest pressure from rising prices.

According to Omdia, Africa recorded the steepest contraction at 39% year-on-year, while APAC excluding Greater China, the Middle East and Latin America all 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 — and in some lower-income markets, back to feature phones.

North America stayed relatively resilient thanks to its premium-heavy market and operator financing and trade-in programs.

Omdia practice leader Amber Liu said the research group expects global smartphone shipments to decline by 12% in 2026, with further price increases and limited room for promotional discounts weighing on holiday demand.

The market is expected to decline further in 2027, albeit more slowly, as persistent high-bandwidth memory shortages and constrained conventional memory supply keep costs elevated.

Vendors are expected to chase additional revenue through software, services and post-sale offerings, while Omdia notes independent retailers face shrinking margins and potential market exits as telecom operators and large-format retailers are better positioned to manage higher device prices.