The global smartphone market declined by 7% year over year in Q2 2026, according to a report from FDM CCS Insight. Shipments also fell 3% compared to the first quarter, while FDM is forecasting a 12% drop in global smartphone shipments for the full year.

Developed markets such as Europe and North America recorded smaller declines in the low single digits, while emerging markets suffered bigger drops as consumers in these regions are generally more sensitive to rising smartphone prices.

The used smartphone market, however, continues to grow. FDM says second hand phone sales increased 3% year over year and are expected to rise by 9% across 2026.

More consumers appear to be turning to refurbished phones instead of buying new devices, largely because of soaring memory costs caused by the ongoing global shortage. New smartphone prices increased 13% in Q2 compared to Q1, and FDM expects prices to keep rising during the second half of 2026.

The refurbished market is also facing pressure. Strong demand combined with limited supply is gradually driving up prices for used phones. Fewer trade ins in the US are reducing the number of devices entering the secondary market, although exports from China and Japan are helping to ease the shortage.