Global smartphone shipments plunged 20% in the third quarter as soaring DRAM and NAND costs pushed up prices, squeezed supply and encouraged consumers to delay upgrades or buy refurbished devices.
Global smartphone shipments fell sharply in the third quarter of 2026, sliding by 20% year on year to their weakest level for that quarter since 2012, according to Counterpoint Research. The consultancy said the slump was driven by a severe shortage of memory components, with rising DRAM and NAND prices lifting manufacturing costs, tightening supply and forcing vendors to push up retail prices. Counterpoint added that the squeeze has made buyers more selective, while some consumers are keeping phones for longer or looking at refurbished handsets instead of new devices.
The market is increasingly splitting between premium models and the price-sensitive mass segment. Counterpoint’s senior analyst Shilpi Jain said the shortage of memory is changing both manufacturer strategy and consumer behaviour, as vendors shift their focus towards profitability rather than shipment volume. The company said global smartphone prices had risen by 20% since the start of 2026, helping to push average selling prices higher even as total unit volumes weakened.
Samsung remained the largest smartphone maker in the period, despite a 3% decline in shipments, as its market share rose to 23%. Counterpoint said the gain reflected the company’s ability to protect revenue through higher average selling prices, a stronger premium mix and solid early demand for its foldable Galaxy Z series, particularly the Z Fold8. Stable component supply also supported sales of its mid-range Galaxy A line in emerging markets, where some Chinese rivals have retreated.
Apple also strengthened its position, lifting its share to 22%, the first time it has exceeded 20% in a third quarter, even though shipments fell year on year. Counterpoint said the absence of a base iPhone 18 model reduced launch-month channel fill compared with the broader iPhone 17 range, while pricing changes only began to affect results late in the quarter. Strong early demand for the iPhone 18 Pro, especially in China and India, together with continuing demand for the iPhone 17 series, helped limit the decline.
Among Chinese vendors, Xiaomi saw the steepest deterioration, with shipments falling by more than 30% and market share dropping to 10%. The company reduced its exposure to the low end of the market and to secondary overseas markets, while pushing more aggressively into higher-priced devices and using its own XRING O3 chip to strengthen its premium line-up in China. Oppo and Vivo both recorded declines of more than 20%, with Oppo trimming its product and brand portfolio and Vivo concentrating on India and China while broadening its premium range. Counterpoint said the outlook for the rest of 2026 remains difficult, with OEMs likely to keep prioritising margins over volume until memory supply and pricing stabilise.
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