Smartphone Revenue Up 7 Percent in Q2, Despite Shipment Slump

Global smartphone revenue grew 7% YoY in 2Q26 to a record high of $109 billion, marking the highest-ever second-quarter revenue despite a decline in shipments, according to Counterpoint Research. The disconnect between revenue and volume was driven by higher average selling prices (ASPs), which grew 17% to a second-quarter record of $400, underpinned by sustained consumer shift towards the premium segment. The ASP growth was also a result of memory-driven price hikes across Android OEM portfolios.

“The global smartphone market has entered a new phase where shipments are no longer the primary driver of growth; instead, value has become the key growth lever, with rising component costs acting as a catalyst. With the entry tier shrinking and facing cost pressures, most OEMs are shifting away from volume-driven strategies, passing higher Bill of Materials (BOM) costs on to consumers, upselling higher-storage and higher-configuration models, and focusing on the premium segment. OEMs also expanded accessibility through instalment plans, aggressive EMI schemes, and trade-in offers, particularly in emerging markets where upfront affordability remains the key barrier to owning premium devices,” said Shilpi Jain, Senior Analyst at Counterpoint Research.

Apple hit its highest-ever second-quarter revenue share of 49% in Q2 2026. The brand’s revenue rose 22% during the quarter, supported by a 13% increase in shipments and 8% growth in ASP. Samsung ranked second in the market, capturing a 16% revenue share in Q2, helped by strong growth in both revenue and shipments, which rose 9% each. Meanwhile, ASP remained relatively flat.

Xiaomi witnessed the steepest shipment decline among the top five brands, falling 26%. The decline also weighed on revenue, which tumbled 17%, despite a significant 13% increase in ASP as the company pushed toward higher-value devices. OPPO and vivo’s revenues declined 10% and 11%, respectively, despite ASP growth of 9% and 13%, with vivo recording the fastest rise in ASP among the top five brands.

Moving ahead, with memory shortages and rising costs showing no near-term relief, OEMs are expected to continue hiking prices and shifting their mix toward higher-value tiers. Supply is increasingly becoming a binding constraint rather than demand, and more severe shipment declines are likely to be witnessed by the smartphone industry in 2H26. Consequently, ASPs are expected to rise in the coming quarters as well.