Global smartphone revenue grew 3% in the third quarter of 2026 despite a sharp fall in shipments, as record average prices and premium models offset rising memory costs and weaker demand.
Counterpoint Research’s preliminary figures show a smartphone market increasingly sustained by higher prices rather than sales volumes. Worldwide revenue rose 3% year on year to $114bn in the third quarter of 2026, while shipments fell 19%. The average selling price reached a quarterly record of $442, up 27%, as premium models and higher component costs lifted prices.
That revenue growth does not necessarily signal stronger profits. Counterpoint senior analyst Shilpi Jain said rising memory costs were squeezing manufacturers’ margins, prompting them to raise prices, reduce less profitable models and focus on priority products and markets. She warned that the entry-level segment has little room to absorb cost increases without either sacrificing profitability or making devices less affordable.
Related data from Counterpoint points to a broader contraction in the market. Its separate shipment estimate put the third-quarter decline at 20%, rather than 19%, and described the result as the lowest third-quarter level since 2012. The estimates differ slightly, but both indicate a sharp fall in volumes amid memory constraints and rising component costs. Counterpoint also reported that smartphone processor shipments dropped 21% year on year, with budget and mid-range products under particular pressure as manufacturers managed inventory and trimmed entry-level ranges.
Apple took half of global smartphone revenue during the quarter, with revenue up 17% year on year and its average selling price rising 19%. Counterpoint attributed the performance to continued demand for the iPhone 17 range and early sales of the iPhone 18 Pro models. The figures illustrate how premium demand can support revenue even as the wider market contracts.
Samsung ranked second by revenue, with a 19% share and a 14% annual increase, while retaining the shipment lead at 22%. Its average selling price rose 21% to $367. Higher prices for Galaxy A models and demand for premium devices, including the Galaxy S26 Ultra and Z Fold8, lifted its product mix. Counterpoint said Samsung’s integrated supply chain also helped it manage higher memory costs.
Xiaomi’s revenue was broadly unchanged as a higher average selling price partly offset lower shipments. OPPO and vivo, by contrast, recorded revenue declines of 26% and 22%, respectively, because falling volumes outweighed price gains. Counterpoint’s figures indicate that both companies have been concentrating on core markets and higher-value products; OPPO’s mid-range A6 series and vivo’s S60 5G, V70 and X300 ranges contributed to their respective sales mixes.
Price increases are already affecting consumers. Counterpoint’s separate analysis found that average retail prices had risen by about 20% during 2026, with higher memory and component costs passed on in part. The research also described consumers delaying upgrades and considering refurbished phones, while price-sensitive segments faced greater pressure than premium-focused markets.
Counterpoint expects the decline in shipments to outpace average-price growth in the fourth quarter, pushing global smartphone revenue down year on year. For 2027, it forecasts continued pressure from memory costs, further price rises and another fall in shipments, though a smaller one than in 2026. The company expects those costs to ease only in 2028, when manufacturers may direct savings towards product upgrades rather than lower prices.
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