Global smartphone shipments are shrinking. Omdia reports a 12% drop in 2026, with the decline hitting budget models hardest. Rising DRAM and NAND costs are forcing vendors to cut back on low-end phones and shift focus to midrange and premium devices.
The contraction equals more than 150 million fewer units compared to last year. Vendors like OPPO, vivo, Honor, and Xiaomi are scaling down entry-level lineups to protect margins. Apple remains steady, but most brands raised prices to offset higher component costs.
Budget phones under $400 are expected to fall 22% this year, while shipments above $400 are projected to grow 5.7%. Affordable devices are losing ground, and premium models are staying resilient.
Also Read: Budget smartphones collapse as memory costs surge, report says
For consumers, the impact is clear: fewer choices at the low end and higher prices across the board. Omdia expects the market to contract again in 2027, before recovering in 2028.
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