Global smartphone shipments fell 20% to a 14-year low on memory costs

Global smartphone shipments plummeted 20% year-over-year in the third quarter, marking the lowest level since 2012, according to preliminary estimates from Counterpoint Research. The decline was driven by soaring memory chip costs and supply shortages, which forced manufacturers to raise prices, reduce shipments, and prioritize profitability over volume. Rising memory component prices, fueled by AI infrastructure demands, contributed to the production cost increases.

Consumers are now holding onto their devices for longer periods, opting for refurbished devices and higher-value models instead. Counterpoint senior analyst Shilpi Jain stated that this shift in consumer behavior has impacted shipment volumes. Samsung maintained its top position with a 23% market share, benefiting from the popularity of its Galaxy Z Fold8 series and stable component supplies for its mid-range devices. Nevertheless, Samsung's shipments declined by 3% compared to the previous year.

Apple's market share reached 22% in the quarter, marking its first time crossing the 20% mark in a third quarter. However, this rise was attributed to the absence of a base iPhone 18 model, which resulted in a smaller launch-month channel fill compared to the full iPhone 17 lineup from the prior year, as reported by Counterpoint.

Other major players faced significant challenges. OPPO and vivo recorded shipment declines of over 20%, while Xiaomi saw a more than 30% drop, reducing its market share to 10%. Xiaomi reduced its exposure to lower-priced devices and some overseas markets to protect its margins. Counterpoint stated that the outlook for the remainder of 2026 remains challenging, with production cuts, tighter portfolios, and a greater focus on premium devices likely to persist.

Price-sensitive segments will face further pressure from higher device prices and limited component availability.