Global smartphone shipments fell 20% year-on-year in the third quarter of 2026 to their lowest level for the interval since 2012, as persistent reminiscence shortages and rising part prices disrupted provide and pushed up retail costs.
This was revealed in preliminary estimates printed by Counterpoint Research on Monday, which confirmed that smartphone retail costs have elevated by 20% to date in 2026 as producers move greater reminiscence prices on to shoppers.
The analysis agency mentioned rising costs for DRAM and NAND reminiscence elements had inflated invoice of supplies (BOM) prices, deepened provide shortages and disrupted shipments, forcing producers to modify cargo plans, increase costs and prioritise profitability over gross sales volumes.
Memory disaster adjustments shopper behaviour
The strain can be altering how shoppers strategy smartphone purchases, as consumers maintain on to their gadgets for longer and take into account alternate options.
- “Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritizing higher-value devices,” mentioned Shilpi Jain, a senior analyst at Counterpoint Research.
Counterpoint mentioned this shift was widening the hole between premium and price-sensitive smartphone segments, as greater costs put higher strain on affordability whereas demand for premium gadgets remained comparatively resilient.
For producers, greater part prices have made it harder to preserve reasonably priced costs, notably in entry-level and mid-range segments, prompting adjustments to pricing and product portfolios.
Samsung and Apple achieve market share
Samsung retained its place because the world’s largest smartphone producer in the third quarter, accounting for 23% of world shipments regardless of a 3% year-on-year decline in cargo quantity.
- Counterpoint attributed Samsung’s efficiency to demand for its Galaxy Z Fold8 collection and steady part provides for its mid-range gadgets.
- Apple’s market share reached 22%, crossing 20% for the primary time in a 3rd quarter, regardless of a year-on-year decline in shipments.
- (*14*) to Counterpoint, the absence of a base iPhone 18 mannequin resulted in a smaller launch-month channel fill than the total iPhone 17 lineup a 12 months earlier.
Counterpoint mentioned the iPhone 18 Pro fashions recorded a stronger launch than their predecessors, notably in China and India, whereas continued momentum from the iPhone 17 collection helped offset the cargo decline.
Chinese producers face mounting strain
Xiaomi recorded a cargo decline of greater than 30% year-on-year, lowering its share of the worldwide smartphone market to 10%.
- Counterpoint mentioned the corporate decreased its publicity to lower-priced gadgets and a few abroad markets to defend margins amid rising part prices.
- OPPO and vivo additionally recorded cargo declines exceeding 20% year-on-year, reflecting the strain on producers as greater part prices affected pricing and product availability.
- Counterpoint expects market circumstances to stay difficult for the remainder of 2026, as producers proceed to prioritise profitability over cargo volumes. Production cuts, tighter product portfolios and a higher give attention to premium gadgets are seemingly to proceed, whereas a significant restoration in shipments is unlikely till part prices and provide circumstances enhance.
Counterpoint’s figures are preliminary estimates for the third quarter of 2026.
AI growth provides strain on smartphone consumers
The newest decline in smartphone shipments comes amid rising memory-chip prices linked to rising demand from synthetic intelligence infrastructure.
Nairametrics reported in February 2026 that world memory-chip shortages pushed by AI demand could push smartphone prices up by 15% to 20% in the approaching months if provide constraints continued.
In September, Nairametrics additionally reported that the GSMA warned rising smartphone component costs could worsen affordability and deepen Nigeria’s mobile internet gap, notably amongst lower-income shoppers.
