Memory costs push consumers towards pricier smartphones

Rising DRAM and NAND memory component costs helped drive a 12 per cent year-on-year decline in Latin America’s smartphone market in the second quarter of 2026, with cheaper devices bearing the brunt of higher retail prices, according to research firm Omdia. The region’s smartphone shipments fell to 30. 3 million units in the three months to June, as higher memory costs fed through to device prices and weakened demand, particularly among consumers looking for entry-level handsets. Vendors and sales channels had partly absorbed the impact during the first quarter through earlier shipments and inventory buffers, but those protections weakened in the second quarter, leaving the lower end of the market more exposed. The pressure was considerably less severe in mid-range, high-end and premium smartphones, where demand proved more resilient.

Memory costs were therefore a key factor behind the widening divide between cheaper and more expensive smartphones, as manufacturers faced higher component expenses while consumers became more cautious about spending. Samsung remained the region’s largest smartphone vendor, shipping 12. 0 million units, an increase of 9 per cent year-on-year, and raising its market share to 39 per cent, its highest level since the first quarter of 2022. Its performance was led by the entry-level Galaxy A07 and A17 and the mid-range A37 and A57, with Omdia pointing to Samsung’s relatively lower exposure to memory component shortages and its strong relationships with sales channels as factors supporting its growth. Xiaomi ranked second with 4. 9 million units and a 16 per cent market share, although its shipments fell 27 per cent year-on-year. The company’s high-end and premium devices reached a record 14 per cent of its sales mix, but this was not enough to…