Global smartphone revenue rises to record $109 billion in Q2 on premium demand: Report
New Delhi, July 31
Global smartphone revenue rose 7 per cent year-on-year to a record $109 billion in the second quarter of 2026 as higher device prices and growing demand for premium smartphones boosted market value, a report showed on Friday.
A report by Counterpoint Research said the quarter marked the highest-ever second-quarter smartphone revenue, with average selling prices (ASPs) rising 17 per cent YoY to a record $400.
The growth was driven by sustained consumer preference for premium devices as well as memory-driven price hikes across Android smartphone portfolios.
According to Counterpoint Research, smartphone makers are increasingly prioritising value over shipment volumes as rising component costs, particularly memory prices, continue to pressure margins.
Senior Analyst Shilpi Jain said manufacturers are moving away from volume-led strategies by passing on higher component costs to consumers, promoting higher-storage variants and expanding premium offerings.
Brands have also improved affordability through instalment plans, trade-in programmes and aggressive financing schemes, particularly in emerging markets.
Apple recorded the strongest performance among major brands, with its revenue increasing 22 per cent YoY and its global smartphone revenue share reaching a record 49 per cent during the quarter.
The growth was supported by a 13 per cent rise in shipments and continued demand for the iPhone 17 series.
Samsung ranked second with a 16 per cent revenue share, supported by 9 per cent growth in both revenue and shipments, aided by strong demand for its Galaxy A-series and a flagship phone model lineup.
Among other leading brands, Xiaomi's revenue fell 17 per cent, while OPPO and vivo reported declines of 10 per cent and 11 per cent, respectively, as higher prices failed to offset weaker shipments in entry- and mid-range segments.
Looking ahead, the report said memory shortages and rising component costs are expected to persist, prompting smartphone makers to further increase prices and focus on higher-value devices, while industry shipments are likely to face greater pressure in the second half of 2026.
— IANS
Reader Comments
Honestly, the EMI and trade-in options have made premium phones more accessible than ever. I just upgraded my iPhone 13 to the 17 series with a good exchange offer and no-cost EMI. It's expensive but spread out, so it feels manageable. Apple having 49% revenue share shows people are willing to invest in quality, especially in urban India.
This is concerning for the Indian market. Xiaomi and OPPO dropping 10-17% shows the budget segment is suffering. Millions of Indians still rely on sub-₹15,000 phones, and if prices keep climbing due to memory shortages, the digital divide will only widen. The government should look into making essential components more affordable locally through the Make in India initiative.
Finally, someone admitting that it's not just about shipments but about value! As a tech analyst, I've been saying this for years. Unlike the old "sell at any cost" mentality, brands are now realising that sustainable growth comes from profitability, not just volume. That said, I wish Indian brands would invest more in domestic R&D to counter this memory price pressure.
I still remember when a good phone cost ₹10,000. Now people are paying ₹1 lakh+ for a phone and calling it "value for money." 🤷♂️ For us in smaller towns, this premium shift doesn't make sense. Samsung Galaxy A-series and mid-range Xiaomi are where the real battle is, and if they keep raising prices, it's going to be a tough time for the average consumer.
The financing schemes
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.