Global Smartphone Market Shifts to Value Growth as Q2 Revenue Hits Record, Shipments Fall to Decade Low

On August 3, 2026, Counterpoint Research released its latest market monitoring report showing that global smartphone industry revenue grew 7% year-on-year in the second quarter of 2026, reaching a record $109 billion. Despite a concurrent 11% year-on-year decline in global smartphone shipments—the lowest second-quarter level since 2013—revenue still set a record for the second quarter. The divergence between revenue and shipment trends stems primarily from rising average selling prices. Supported by consumers' continued shift toward the premium segment, average selling prices rose 17% year-on-year to a second-quarter high of $400. Additionally, rising storage costs prompted Android manufacturers to broadly increase product prices, contributing to the average selling price growth.

The report noted that the global smartphone market has entered a new phase centered on value growth, with shipments no longer the primary driver of growth. Continuously rising component costs have accelerated this trend; most manufacturers are passing higher bill-of-materials costs to consumers, while actively promoting higher-storage and higher-configuration products and focusing on the premium segment. Manufacturers are also using installment plans and trade-in offers to expand product accessibility, particularly in emerging markets, to lower the barrier for consumers purchasing high-end devices.

Brand performance diverged. Apple accounted for 49% of global smartphone revenue share, the highest for any second quarter on record, with revenue up 22% year-on-year, shipments up 13%, and average selling prices up 8%. The report said Apple's growth was mainly driven by continued strong demand for the iPhone 17 series, with the base model and Pro Max performing especially well. While most competitors raised prices significantly, Apple's overall pricing remained relatively stable, demonstrating strong cost-absorption capability. By region, China, Europe, and emerging markets stood out.

Samsung ranked second with a 16% revenue share, with revenue up 9% year-on-year. Stable demand for the Galaxy A series supported shipment growth, while the Galaxy S26 series solidified its premium market performance. The Middle East, Africa, and North America drove growth. Xiaomi posted the largest shipment decline among the global top five brands, with second-quarter 2026 shipments down 26% year-on-year, revenue down 17%, and average selling prices up 13%. Due to a high proportion of entry-level and mid-range products, Xiaomi was more affected by rising storage costs; cost-driven price increases led to faster demand declines than the revenue gains from higher average selling prices. OPPO and vivo saw revenue decline 10% and 11% year-on-year, respectively, with average selling prices up 9% and 13%, respectively. Vivo had the fastest average selling price growth among the top five brands. Because these two manufacturers have a high presence in price-sensitive markets, shipments fell notably, partially offsetting the gains from price increases.

Since the start of 2026, under the influence of the storage price hike cycle, phone prices have continued to rise, and global smartphone average selling prices have climbed steadily. In retrospect, in mid-March, OPPO and vivo took the lead in adjusting prices, Honor raised prices through a "renewed version" launch, and Samsung's Galaxy S26 domestic version raised the entry threshold, all triggered by storage chip price increases. Subsequently, Xiaomi, Huawei, and Apple products all raised prices. On August 2, Xiaomi announced price increases of 400 to 500 RMB for the Xiaomi 17 series, a 300 RMB increase across the Redmi K90 and Turbo 5 lineups, and synchronized new prices for nine flagship models currently on sale—marking Xiaomi's third round of price adjustments within the year.