Global shipment of smartphones hits ‘new low’ amid supply shortages

The report by Counterpoint Research, a global market research firm, reveals a significant decline in global smartphone shipments in Q3 of 2026. The market witnessed a 20% year-on-year decrease, marking the lowest Q3 figure in 14 years. The decline is primarily due to relentless increases in the prices of essential components like Dram and Nand, leading to a surge in memory costs and overall bill of material (BOM) costs.

This has exacerbated supply shortages, causing disruption in production for original equipment manufacturers (OEMs) worldwide. As a result, consumers are facing higher smartphone costs, leading to a shift in consumer behavior and preferences. The report suggests that the market is entering a more selective phase, with consumers opting for refurbished devices and higher-value smartphones.

OEMs are adjusting their strategies, pricing, and market approaches to maintain profitability. Samsung experienced a 3% year-on-year decline in shipments but saw a rise in market share to 23%. Apple, on the other hand, maintained a market share of 22% despite a year-on-year decline in shipments. Xiaomi's market share fell dramatically by more than 30% to 10%.

The outlook for the remainder of 2026 remains challenging, with OEMs focusing more on profitability and premium devices due to elevated component costs and weaker affordability.