The latest report from FDM CCS Insight highlights significant challenges facing the smartphone market, revealing a 7% decline in global shipments in the second quarter compared to the same period in 2025. This downturn is attributed to increasing memory prices and heightened production costs, which are expected to impact the market further into 2026.
According to the report, smartphone shipments fell 3% when compared to the first quarter of this year. FDM predicts an overall 12% decrease in global smartphone shipments in 2026, indicating ongoing pressures in the industry.
While developed markets such as Europe and North America experienced only minor declines, emerging markets were hit harder, largely due to consumers' sensitivity to rising prices. This trend illustrates a shifting landscape as more budget-conscious consumers turn to alternative options.
Interestingly, the secondary market is witnessing growth despite the overall decline in new smartphone shipments. Second-hand phone sales have increased by 3% year-over-year and are projected to rise by nearly 10% (9% precisely) for the entire year. This shift in buyer behavior suggests that consumers are increasingly preferring refurbished devices over more expensive new models.
The surge in new smartphone prices—up by 13% from Q1 to Q2—can be traced back to a global memory shortage that has driven production costs higher. Analysts at FDM anticipate that prices will continue to climb in the latter half of 2026, further complicating the situation for manufacturers and consumers alike.
However, the second-hand market is not without its challenges. As demand for refurbished phones rises, the limited supply is pushing prices upward as well. A decrease in trade-ins in the US is leading to fewer devices entering the secondary market, though strong exports from countries like China and Japan are helping to alleviate some of the supply constraints.
