Persistently high memory prices disrupted supply chains, forcing vendors to raise prices, restructure portfolios, and shift focus from shipment volume to protecting profit margins.
The global technology hardware market is undergoing a supply-driven reset. As the ripple effects of a memory and storage cost cycle work their way through supply chains, both smartphone and personal computer vendors are finding that the era of chasing sheer volume is taking a backseat to margin preservation. Industry researchers point to sustained price increases for essential components as the primary catalyst reshaping vendor strategies across the board.
Smartphone Market Polarization and Vendor Strategies in 2Q 2026
The smartphone sector felt the pinch acutely in the second quarter. Following front-loaded demand in the first quarter of the year, global shipments dropped 6% year on year to 272.0 million units according to Omdia. The resulting market is sharply polarized, with a vendor’s survival and performance dictated by vertical integration, scale, and pricing power.
Samsung managed to retain its position as the world’s largest smartphone vendor by shipping 60.5 million units—a 5% year-on-year increase that secured a 22% market share. Analysts note that Samsung’s vertically integrated memory business insulated it from component shortages better than its competitors. A delayed launch of the Galaxy S26 series also pushed premium demand directly into the second quarter, allowing Samsung to capture additional ground in the entry segment as rivals scaled back product line-ups.
Apple delivered its strongest-ever second quarter, shipping 55.1 million units for a 20% market share. Channel partners aggressively built up inventories of the base iPhone 17 anticipating future price increases and expectations that the iPhone 18 series will launch at higher price points. Meanwhile, other major players faced steep declines. Xiaomi dropped 26% year on year to 31.2 million shipments, marking its second consecutive quarter of decline. With over half of its shipments priced below US$200, Xiaomi bore the heaviest brunt of memory cost inflation in emerging markets across Asia Pacific and Latin America.
OPPO, encompassing Realme and OnePlus, slipped to 28.4 million shipments—down 17% year on year—while streamlining its three-brand portfolio. Vivo rounded out the top five with 21.5 million shipments, marking an 18% decline.
Chipset Shipments Drop Sharply Amid Persistent Supply Constraints
Beyond finished handsets, the component pipeline is suffering severe contraction. According to Counterpoint Research data, global smartphone chipset shipments declined by 15% during the first half of 2026. The two largest players, Qualcomm and MediaTek, absorbed the heaviest blows with an estimated 25% decline in system-on-chip shipments compared to H1 2025.
Qualcomm experienced limited growth for its flagship Snapdragon 8 Elite Gen 5 model and broader premium lineup. MediaTek saw its low-end 5G chips plunge, though its flagship Dimensity 9500 series held up better. Conversely, Apple, Unisoc, and Samsung managed to grow their silicon shipments. Apple capitalized on robust demand for the iPhone 17 series to drive the A19 and A19 Pro chipsets, while Unisoc gained ground through entry-level 4G chips and new partnerships with Xiaomi for Redmi and Poco devices. Counterpoint projects that smartphone chipsets will decline 14% overall for the year, with entry-level system-on-chip shipments dropping by as much as 30%, and warns that memory chip prices will not normalize until the second half of 2027.
“Price is once again becoming a competitive differentiator. The current memory cost cycle is driving a structural repricing of the industry, creating a lasting shift in how vendors compete on pricing, profitability and product positioning.”
Le Xuan Chiew, Research Manager at Omdia
PC Market Cools as Buyers Pull Forward Purchases
The personal computer market mirrored the stress seen in mobile devices. Worldwide shipments of desktops, notebooks, and workstations fell 3.6% year over year to 65.7 million units in the second quarter according to Omdia research. Desktop shipments hit 13.9 million units, down 1.3%, while notebook shipments fell 4.2% to 51.7 million units.
Makers and buyers alike scrambled during the opening months of the year. Sharp increases in memory and storage prices during the first quarter drove up device pricing by the second quarter, prompting commercial and consumer buyers to accelerate purchases ahead of expected hikes.
“The sharp increase in memory and storage prices during the first quarter of the year had a significant impact on product pricing in the second quarter. It also prompted consumers and IT decision makers to bring forward their PC purchases to mitigate the risk of further price increases. Although sales volumes were maintained at a stable level, the risk of a subsequent downturn remains.”
Ben Yeh, Principal Analyst at Omdia
Across comparable product lines, device prices have climbed roughly 20% to 40% compared to last year. Apple implemented notable price increases across its MacBook lines, while competitors began adjusting their pricing upward as early as the end of the fourth quarter of 2025.
Vendor Performance and Market Share in the Personal Computer Sector
Despite declining volumes, major PC manufacturers maintained their relative standing with varying degrees of success amid the upstream component inflation.
| Vendor | 2Q26 Shipments (Thousands) | 2Q26 Market Share | Annual Growth |
|---|---|---|---|
| Lenovo | 16,622 | 25.3% | -2.1% |
| HP | 13,002 | 19.8% | -9.0% |
| Dell | 9,291 | 14.1% | -4.9% |
| Apple | 7,257 | 11.1% | 15.9% |
| Asus | 5,019 | 7.6% | 0.9% |
| Others | 14,479 | 22.0% | -8.5% |
| Total | 65,670 | 100.0% | -3.6% |
Lenovo held the top position by shipping 16.6 million units, capturing a 25.3% market share despite a 2.1% dip in volume. HP secured second place with 13.0 million units shipped, though its volumes fell 9%. Dell maintained third place by shipping 9.3 million units, experiencing a 4.9% decline.
Apple posted the strongest growth among the top vendors, shipping 7.3 million units—a 15.9% jump driven by the launch of the MacBook Neo and healthy underlying demand. Apple expanded its market share by 2 percentage points compared to the same period in 2025. Asus rounded out the top five with 5.0 million units shipped, essentially flat with a 0.9% gain.
Delayed Demand and Structural Repricing Shape the Outlook
The rush to acquire hardware before price hikes has cleared out immediate channel inventories, but analysts warn that a dry spell is approaching. The market is now staring down a period of delayed demand.
“After the pull-forward activity seen in the first half of the year, signals are now pointing to a period of delayed demand as the true impact of the supply crunch sinks in.”
Ishan Dutt, Research Director at Omdia
A June survey of business-to-business channel partners revealed that more than half of respondents are delaying hardware upgrades until the market stabilizes, while 6% noted that outright project cancellations are likely. This hesitation comes at a critical juncture, arriving just as the market approaches the one-year mark from the October 2025 Windows 10 EOS deadline, leaving a significant portion of commercial computer fleets in need of upgrades.
Upstream pressures show little sign of immediate relief. Beyond memory and storage, secondary components such as multilayer ceramic capacitors and printed circuit boards are also seeing price increases. While component cost growth is expected to slow in the second half of 2026, device prices will continue reflecting upstream inflation. With consumers growing accustomed to higher price tags, hardware vendors appear poised to maintain a structurally higher pricing architecture well beyond the current memory cycle.
Worth a look
