Omdia: smartphone market shipments fell in Q2, but Samsung and Apple grew their market shares

According to a new report by Omdia, global smartphone shipments fell 4% in the second quarter of this year (April-June) compared to the same period last year. Obviously, the ongoing memory crisis is to blame, pushing up component costs and making devices more expensive.

However, both Samsung and Apple managed to grow their market shares - the former from 20% to 22%, and the latter from 16% to 20%. Meanwhile, Xiaomi's market share fell from 15% to 11%, Oppo's from 12% to 10%, and vivo's from 9% to 8%.

As you can see, Samsung still leads the pack and Apple is now a close second. The Korean company gained ground in the budget segment as its Chinese rivals reduced product lines and increased prices. Apple's second quarter was the best in its history, thanks to the iPhone 17 series and the fact that it didn't raise prices.

The price range in which sales fell the most is under $400, "where supply constraints are tightest, profit margins are slimmest, and price sensitivity is highest", according to Runar Bjorhovde, Omdia's Principal Analyst. Memory and storage alone now account for more than 60% of the bill of materials for budget devices and more than 30% for high-end models. Memory price declines are only expected to occur in the second half of next year, but prices are unlikely to return to pre-2025 levels even then.

Omdia expects the sharpest sales declines to hit in the Q3 and Q4. Budget-constrained consumers will have fewer and fewer options as vendors will lean further into higher price segments, making many "mass-market buyers" delay purchases, downgrade expectations, use financing, or buy refurbished devices.

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