• The global primary smartphone market contracted 4.4% year-on-year in 1Q26 despite channels front-loading inventories as device prices begin to rise sharply. This casts an ominous shadow on the outlook for full-year 2026.
• Memory chip shortages will significantly affect shipments over the rest of the year, with some entry-level devices already seeing prices rise by more than 50% year-on-year.
• The organized secondary smartphone market is filling the gap. Sales of second-hand devices grew 4% year-on-year in 1Q26, building momentum at the start of a potentially vital year for the sector. FDM CCS Insight forecasts the global organized secondary market to grow 15.4% in 2026.

London, 17 June 2026: The global primary smartphone market declined by 4% in the first quarter of 2026 as price pressures from the global memory crisis bite, according to FDM CCS Insight, a leading technology research and advisory firm.

FDM CCS Insight expects the market to drop by an eyewatering 14.8% by the end of 2026. Meanwhile, the secondary market continues to flourish as people increasingly seek lower-cost alternatives, which are set to rapidly increase in price.

Ben Hatton, Research Analyst at FDM CCS Insight, comments: “Front-loading of inventory has delayed the inevitable downturn in the market for new devices in the first quarter of 2026, but the outlook remains of significant concern. Some entry-level smartphones have already seen prices rise by more than 50% compared with this time last year. Major challenges lie ahead as consumers face mounting device costs amid the backdrop of weaker finances because of the conflict in the Middle East”.

Hatton adds, “The memory chip crisis shows no sign of slowing down in the near future, ramping up the pressure on manufacturers and consumers. Memory components now account for more than 30% of a manufacturer’s bill of materials in some smartphones. The full impact has yet to be felt in many regions, but it’s clear that device prices will accelerate over the rest of the year. The options available in the low- and mid-price tiers are diminishing, and we expect more people to turn to the secondary market in search of low-cost smartphones”.

In contrast to the decline in the primary smartphone market, the organized secondary market grew by 4% year-on-year in 1Q26. Consumers increasingly see the segment as a suitable alternative in search of low-cost devices. FDM CCS Insight forecasts the global secondary smartphone market to grow 15% in 2026.

Hatton concludes, “The secondary market has an opportunity to serve some of the demand that will be unfulfilled by the primary market. The major challenge in the near term is to grow supply during a fallow period of flagship launches. Countries with mature trade-in programmes will be in a much stronger position to capitalize on this opportunity and maintain higher growth rates in the secondary market over the rest of the year. Demand continues to heavily outweigh supply in the global secondary market. Trade-in discounts, early upgrade offers and more-lucrative trade-in promotions will be key to unlocking the market’s full growth potential in 2026 and 2027”.

FDM CCS Insight tracks the global connected devices market in a quarterly Pulse dashboard. The latest update with 1Q26 data is available now; contact FDM CCS Insight for more information.

Notes to Editors

FDM CCS Insight’s Pulse dashboard presents findings from original research, with this latest update conducted between April and May 2025. The methodology includes sell-out data provided by more than 40 market participants, senior-level discussions to complete channel and country market sizes and price scraping of major players in the market.

The dashboard explores the overall market for mobile devices, including primary and secondary markets for smartphones, smartwatches, tablets and laptops. It specifically zooms in on the organized secondary segment, presenting analysis of device models, features, brand metrics and more.

More details of FDM CCS Insight’s extensive research into connected devices can be found at https://www.ccsinsight.com/ccs-insight/research-areas/connected-devices/

About FDM CCS Insight

FDM CCS Insight is uniquely positioned to deliver market-leading data with trusted analyst insight, offering technology clients the context, foresight and confidence needed to shape strategy and drive growth. Backed by private equity firm Inflexion, FDM CCS Insight’s analysis is powered by industry-leading point-of-sale datasets. These provide an exceptionally accurate view of telecom market share and brand performance, enabling clients to optimize product portfolios, stay ahead of market fluctuations and drive sales efficiency.

Media Contact

FDM CCS Insight Media Relations: emma.bluck@ccsinsight.com