Global smartphone shipments fell 20 percent year over year in the third quarter of 2026, marking the weakest July to September period in 14 years, according to preliminary estimates from Counterpoint Research.
The decline was driven primarily by a sharp rise in memory chip prices that has made phones more expensive to build and sell.
Memory costs squeeze the entire industry
Global smartphone shipments declined 20% YoY in Q3 2026, the lowest Q3 level since 2012, according to preliminary estimates from Counterpoint Research’s Market Monitor service.
The firm’s senior analyst, Shilpi Jain, said in the official report that “Q3 was the second successive quarter to take the full brunt of the memory crisis.”
The decline was close to Counterpoint’s expectations as rising DRAM and NAND prices intensified the memory cost shock during the quarter. Higher memory prices increased bill of materials (BOM) costs and worsened component shortages, disrupting shipments across the industry.
Smartphone manufacturers passed on these costs to consumers, driving up global smartphone retail prices by 20% so far in 2026 and increasing average selling prices (ASPs).
Jain said consumers are “holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritizing higher-value devices,” according to the report cited by FourWeekMBA.
A separate Omdia analysis described similar dynamics, noting that persistent memory and storage cost pressures have constrained pricing flexibility and prompted vendors to scale back shipments of low-margin devices.
Samsung and Apple gain share in a shrinking market
Samsung retained the top position with a 23% market share, followed by Apple at 22%. Samsung’s shipments declined 3% YoY while its market share increased to 23%, the largest share gain among major OEMs.
Apple’s shipments also fell even as its market position strengthened.
Apple’s market share reached 22%, surpassing 20% for the first time in the third quarter, even as its shipment volume declined year over year. The absence of the entry-level iPhone 18 resulted in lower channel supply during the launch month compared with the full-series launch of the iPhone 17 a year earlier.
The iPhone 18 Pro performed strongly in China and India , while sustained demand for the iPhone 17 series helped offset the shipment decline. Xiaomi’s shipments fell more than 30% YoY, reducing its market share to 10%, as the company reduced its exposure to lower-price segments and non-core overseas markets, raised ASPs and tightened shipment plans to avoid selling devices at uneconomical margins. By contrast, OPPO and vivo both recorded shipment declines of more than 20% YoY, with market shares falling to 9% and 8% respectively, as both raised prices across their entry-level and mid-range portfolios in response to higher memory costs.
China’s market shows a similar split
Inside China specifically, the pattern held. According to a Reuters report citing IDC data, China’s third-quarter smartphone shipments fell 15.4 percent from a year earlier to 57.9 million units, research firm IDC said , with Huawei leading the market with a 21-percent share while Apple was second with 17.8 percent, though its shipments in China fell 4.3 percent.
China’s smartphone shipments fell 15.4% year-on-year to 57.9 million units in the third quarter of 2026, marking a sixth consecutive quarter of decline, according to research firm IDC.
Apple’s new iPhones sold better than expected, but having fewer models this year weighed on its shipments, IDC said.
What comes next for buyers and manufacturers
Counterpoint expects the squeeze to persist, with a meaningful recovery in volumes unlikely until component costs and supply conditions improve. Omdia similarly noted that vendors are being forced to reassess the profitability of their entry-level portfolios and make more selective decisions about product positioning, pricing and market coverage, prioritizing average selling price growth and portfolio optimization to sustain shipment value and protect profitability.
Price-sensitive segments will likely face further pressure from higher device prices and limited component availability.
For consumers, that likely means fewer budget options and continued price increases on new devices.
