Global smartphone shipments fell 7% year over year in the second quarter of 2026, according to an FDM CCS Insight report. Shipments also dropped 3% compared with the first quarter of this year. FDM expects the global smartphone market to remain under pressure throughout 2026. The firm forecasts a 12% decline in global smartphone shipments for the full year.
The decline has been smaller in developed markets, including Europe and North America. Shipments in these regions fell by low single digits during the quarter. However, emerging markets faced a sharper decline. Buyers in these regions are more sensitive to price increases, making expensive new smartphones harder to sell.
Meanwhile, the second-hand smartphone market continues to grow. According to FDM, sales of used phones increased 3% year over year in Q2. FDM expects the secondary smartphone market to grow 9% across 2026. More buyers appear to be choosing refurbished phones as new devices become more expensive.
Rising memory prices are adding to the pressure on new smartphones. A global memory shortage pushed new phone prices 13% higher in Q2 compared with Q1.
FDM expects smartphone prices to rise further during the second half of 2026. That could push even more consumers toward cheaper refurbished devices. However, the refurbished market is also facing supply problems. Strong demand and limited inventory are gradually pushing second-hand phone prices higher.
The US is seeing fewer trade-ins, which means fewer used devices are reaching the secondary market. Still, strong exports from China and Japan are helping reduce the supply gap. The shift highlights a growing challenge for smartphone makers. As new devices become more expensive, consumers are increasingly turning to the secondary market for better value.
