Global smartphone shipments grew 2% in 2025 to 1.25-billion units, reflecting a stable but uneven recovery year in which a weaker first half was followed by a stronger second half, defined by booming emerging economies and positive reception of flagship launches.

However, global research firm Omdia says rising memory costs and shortages started to impact on the market and constrain the broader volume upside during the fourth quarter of 2025.

Mounting cost pressures towards year-end point to a stronger focus on pricing discipline, profitability and operational efficiency heading into 2026, the research firm says in a statement.

According to Omdia senior analyst Runar Bjørhovde, DRAM supply tightness added considerable supply-side pressures to the smartphone industry, and is expected to be a key defining factor in 2026.

“Amid restricted DRAM supply of both LPDDR4 and LPDDR5, the battle to secure supply and limit cost increases is intense amongst all vendors.”

All vendors are using mitigating tactics, for example, by emphasising long-term partnerships, using scale to secure capacity and focusing on their supplier base.

The situation is particularly critical for vendors with heavier exposure to entry-level smartphones, which are highly price elastic, and where memory and storage costs make up a higher share of the bill-of-materials.

“Rising cost pressures are reshaping how smartphone vendors approach 2026. Higher semiconductor costs, alongside a slowing refresh cycle, are expected to weigh on shipment momentum,” added Omdia principal analyst Sanyam Chaurasia.

In response, vendors are tightening configurations, aligning launch strategies more closely with component availability and using channel-led levers such as services, trade-ins and ecosystem bundling to support higher price points.

“The push toward greater scale and supply-side leverage is already becoming evident, exemplified by realme moving under Oppo’s umbrella, reflecting early signs of consolidation as vendors seek greater scale to manage rising costs to maintain competitiveness in the decade’s second half.”

During the fourth quarter of 2025, the global smartphone market grew 4% year-on-year, supported by seasonal demand and improved inventory discipline. 

Growth was led by top vendors. 

Apple retained the largest market share at 25%, up from 24% a year earlier.



The record fourth quarter was driven by strong demand for the iPhone 17 series, alongside continued traction from older- generation models during the holiday season.

The base iPhone 17 exceeded expectations following storage upgrades at unchanged pricing, while Pro models gained momentum as Apple ramped up production through the quarter.

Meanwhile, the iPhone Air acted as a portfolio showcase, with its slim form factor enhancing retail marketing and reinforcing the premium appeal of the Pro lineup.

Samsung ranked second with an 18% share, up from 16% in the fourth quarter of 2024, driven by sub-$300 Galaxy A17 4G and 5G sales.

Xiaomi stayed third at 11%, down from 13% in the prior year, while

vivo maintained an 8% market share, driven by India. Oppo returned to the global top five, growing its share from 7% to 8%.