According to new data from Counterpoint Research and Omdia, global smartphone revenue rose 7% year-over-year in the second quarter of 2026, reaching a record $109 billion. Despite a 6% drop in shipments to 272 million units, the market saw its highest second-quarter revenue ever, driven mainly by higher prices and a shift toward premium devices.
Revenue and Pricing Trends in Q2 2026
The global average selling price (ASP) for smartphones increased 17% year-over-year to $400 in Q2 2026. Analysts attribute this growth to rising component costs, leading manufacturers to focus less on volume and more on product value. Strategies like installment plans, trade-ins, and promotions help reduce purchase barriers for high-end models, especially in emerging markets.
Apple’s Strong Performance Amid Market Shifts
Apple achieved the fastest revenue growth among major smartphone brands, with a 22% increase in smartphone revenue, now claiming 49% of the global market revenue—a historic high. The sustained demand for the iPhone 17 series, particularly the base iPhone 17 and iPhone 17 Pro Max, bolstered Apple’s high-end positioning. Unlike rivals that raised prices significantly, Apple kept prices mostly stable, absorbing rising bill of materials (BOM) costs. However, the company may consider price hikes in coming quarters. Apple’s performance was especially strong in China, Europe, and emerging markets.
Samsung Holds Second Place with Balanced Growth
Samsung secured 16% of global smartphone revenue in Q2 2026, with both revenue and shipments up 9% year-over-year. The Galaxy A series continued to provide stable shipment growth, while the Galaxy S26 lineup strengthened Samsung’s high-end presence. The brand saw notable shipment increases in the Middle East, Africa, and North America. Samsung’s vertical integration helped manage costs, allowing mostly steady pricing alongside selective price increases.
Xiaomi, OPPO, and vivo Face Sales and Revenue Challenges
Xiaomi experienced the sharpest shipment decline among the top five brands, dropping 26% year-over-year in Q2 2026. Despite a 13% average price increase, revenue fell 17%. This decline is linked to Xiaomi’s dependence on entry-level and mid-range models, which are more vulnerable amid memory chip shortages. In response, Xiaomi has reduced its product lineup and emphasized higher-margin mid-to-high-end devices.
Similarly, OPPO and vivo saw revenue decreases of 10% and 11%, respectively, even as their ASPs rose 9% and 13%. vivo recorded the fastest ASP growth among the top five brands. However, price increases could not fully offset lower demand in price-sensitive markets and shipment declines.
Market Outlook: Supply Constraints Over Demand
Counterpoint expects that storage chip shortages and rising costs will keep upward pressure on smartphone prices in upcoming quarters. The industry’s main challenge is shifting from weak demand to supply limitations. Global smartphone shipments may continue to decline in the second half of 2026, while average prices are likely to rise further.
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Source: ithome.com
