Global smartphone shipments are expected to fall 12.2% in 2026, down to 1.093 billion units. That’s 152 million fewer devices compared to last year, based on Omdia’s latest report.
The drop comes as vendors deal with the rising cost of components. DRAM and NAND flash prices surged more than 80% in the first quarter of 2026.
To keep margins intact, most brands increased retail prices and cut back on low-end models. So far, Apple is the only major player that has kept its pricing steady, but that probably won’t last.
Omdia’s research also saw the average selling price of smartphones to increase from $467 in 2025 to $565 in 2026 (that’s around ₱29,000 to ₱35,000), which is a record 21% jump. This shows a shift toward mid-to-high-end devices, with vendors focusing on value instead of volume.
Emerging markets like Africa, Latin America, and the Middle East will feel the sharpest impact, with demand dropping heavily. Developed markets will see smaller declines, as buyers there are more willing to absorb higher prices.
Omdia expects the market to shrink again in 2027, though at a slower pace of 0.9%. The forecast for recovery is in 2028.
Also Read: How the Middle East conflict affects smartphone prices
The smartphone industry is entering a phase of fewer shipments but higher prices. Consumers will pay more for devices, while vendors push premium models to survive cost pressures.
