Omdia Predicts Sustained High Phone Prices Despite Shortage End
Omdia states that phone prices will remain high even after the recent shortage period ends. This shift is marked by a significant change in the display panel market, with more panels now going into refurbished phones than new ones for the first time this year.
Refurbished vs. New Phones: A Tapestry of Change
In Q1 2026, 298 million displays were shipped to the refurbished phone market compared to 289 million sent to companies producing new phones. (Omdia) This crossover indicates a permanent shift in pricing dynamics for smartphones.
What Does This Number Actually Represent?
Omdia’s data encompasses various aspects of refurbishment: consumer repairs, professional recycling, and aftermarket replacement parts. It includes cracked screens and resold devices, reflecting the broader trend of extending phone lifespans rather than replacing them outright.
Technology Trends in Refurbishment
The technology breakdown reveals an interesting trend: OLED displays now make up 7% of the refurbished market, up from 2% a year prior, indicating that premium phones from three or four years ago are entering their second life.
The Root Cause: Memory Shortage and Its Aftermath
High memory prices triggered a ripple effect: component costs increased, phone manufacturers cut build plans, and expected orders didn’t materialize. Omdia forecasts a 12% fall in display demand from new phones throughout 2026.
"The refurbishment market acts like a reservoir that helps absorb fluctuations in demand from smartphone manufacturers." – Joy Guo, Senior Principal Analyst, Omdia’s Displays Practice
The Phone Market: A Reservoir of Change
The decline in global smartphone shipments by 6% to 272 million units in Q2 2026 was not uniform. Xiaomi experienced a 26% drop, while OPPO and Vivo saw 17% and 18% falls, respectively. Geopolitical disruptions and supply chain issues in the Middle East contributed to these drops, though Omdia expects stabilization in the second half of the year.
Two Companies Defy the Trend
Samsung’s shipments rose 5% to 60.5 million units, capturing 22% of the market due to its vertical integration and ability to secure memory components. Apple enjoyed its best Q2 on record with 55.1 million units shipped, up 23%, thanks to strong performance across all segments.