The global smartphone market is slowing, but the biggest brands are widening their lead. Omdia reported that worldwide smartphone shipments fell 4% in the second quarter compared with the same period last year, even as Samsung and Apple expanded their share.
The shift points to a market that is increasingly concentrating around the largest players. Samsung rose from 20% to 22%, while Apple climbed from 16% to 20%, marking a stronger position for both companies at a time when smaller rivals are losing ground.
Chinese Rivals Lose Share as Pricing Pressure Grows
Xiaomi, Oppo, and vivo all posted declines in market share. Xiaomi dropped from 15% to 11%, Oppo fell from 12% to 10%, and vivo slipped from 9% to 8%.
Omdia said rising component costs, especially from the ongoing memory crisis, are pushing device prices higher. That pressure is hitting the lower end of the market hardest, where consumers are far more sensitive to price increases.
| Brand | Previous Share | Current Share |
|---|---|---|
| Samsung | 20% | 22% |
| Apple | 16% | 20% |
| Xiaomi | 15% | 11% |
| Oppo | 12% | 10% |
| vivo | 9% | 8% |
Samsung’s strongest growth is coming from the budget segment, where Chinese competitors have reduced product lines and raised prices. That has created room for Samsung to attract more buyers at the lower end of the market, even as overall shipments soften.
Apple also posted its second quarter-best result in company history, supported by the iPhone 17 series and a decision not to raise prices. The combination helped the company stand out in a market where affordability is becoming a bigger challenge.
The Under-$400 Segment Faces the Sharpest Squeeze
Runar Bjorhovde, Principal Analyst at Omdia, said the under-$400 category is under the most pressure because supply is tight, margins are thin, and price sensitivity is highest. He added that memory and storage now account for more than 60% of bill of materials for budget devices and more than 30% for premium models.
That cost structure means the pricing strain is no longer limited to cheaper phones. It is also affecting high-end devices, where component costs are still taking a larger share of the total build than before.
Omdia expects the sharpest decline in sales to arrive in the third and fourth quarters. As vendors move toward higher price tiers, choices for buyers with limited budgets are likely to narrow further.
In response, many mass-market consumers are expected to delay purchases, lower their expectations, use financing, or turn to refurbished devices. The message from the market is clear: the next phase of smartphone competition will depend not only on specifications, but on which brands can survive the pressure of rising component costs.