Apple and Samsung occupied every spot on the global top 10 best-selling smartphone list in the second quarter of 2026. This happened as the total market fell 11%, marking a record high in concentration. Manufacturers are now cutting lower-margin models to focus on premium phones, driven by rising costs for key memory components like DRAM and NAND.
Apple and Samsung dominated global smartphone sales in the second quarter of 2026, securing all 10 of the best-selling device spots globally. This performance comes as the overall smartphone market shrank by 11% year-over-year, marking the lowest Q2 shipment volume since 2013. The top 10 devices combined for 26% of total global unit sales, the highest share on record for any June quarter.
The Shift to Premium Models
The industry is facing pressure from rising component costs, particularly for memory chips like DRAM and NAND. As AI-related demand consumes more memory capacity, smartphone manufacturers are finding it more expensive to build entry-level phones. To protect their profit margins, companies are narrowing their focus. They are prioritizing premium, high-margin flagship models where consumer price sensitivity is lower, and reducing the number of budget-friendly handsets in their portfolios.
This change in strategy is a reaction to the persistent supply chain volatility that has made the production of affordable hardware less profitable. For many manufacturers, shifting resources toward higher-end devices is the primary way to maintain margins despite the squeeze in component supply.
Company Performance and Market Risks
Apple has shown resilience in this environment, with demand for its iPhone 17 series helping the company maintain its competitive position despite the broader market decline. Samsung has navigated the same market environment but recently faced a stock price decline, partly due to shareholder dissatisfaction regarding the company's capital return plans. While Samsung announced a significant shareholder return package estimated between 90 trillion and 110 trillion won, investors had expected more aggressive measures, leading to selling pressure.
For the industry, the current market dynamics bring several risks. Persistent memory supply shortages could continue to squeeze profit margins if companies cannot fully pass on the cost increases to consumers. Furthermore, with the industry leaning heavily into the premium segment, future growth may become harder to achieve if macroeconomic uncertainty reduces demand for expensive smartphones. Smaller competitors face even tougher conditions as the market continues to consolidate around the two largest players.
Investors may monitor updates on component pricing, which remains a key factor for future margin stability. Additionally, management commentary on how companies plan to manage inventory and navigate consumer demand in the upcoming quarters will be a significant indicator of health for the smartphone sector.