Smartphone components are getting more expensive to make, but that hasn’t stopped the global market from experiencing steady growth according to a new report by London-based tech research and advisory group Omdia. Between Q4 2025 and Q4 2024, smartphone sales went up about 4%, the report said.
iPhones came out ahead for the third consecutive year, capturing 25% of the market. Apple held its position with strong sales of the iPhone 17, researchers explained. The debut of the iPhone Air also played a role and acted as a “portfolio showcase.”
The latest model includes brighter displays, enhanced battery life, new cameras, and deeper Apple Intelligence integration, while the iPhone Air wows for its extremely light, thin design.
Meanwhile, the Omdia smartphone report said Samsung controlled about 18% of sales. Its success was driven by phones in the range of $300 or less, analysts said. The Galaxy A17 4G and 5G models were especially popular.
These budget phones will likely be a strong focus in 2026 and beyond. In the face of supply-side pressures across the industry, manufacturers should focus on mitigation strategies, including long-term partnerships and buying at scale. Memory is getting more expensive and harder to find. Without these issues, the market may have grown even more.
To make up for increasing costs, manufacturers will have to focus on “pricing discipline, profitability, and operational efficiency heading into 2026,” according to a press release about the smartphone report.
Sanyam Chaurasia — principal analyst at Omdia and one of the report authors — expects providers to support higher smartphone price points by offering services, trade-ins, and ecosystem bundling.
Providers — especially those selling entry-level smartphones — should be aware of a recent of a recent Reviews.org study that found that people are less likely to buy a new phone every year than they once were.