Second-quarter smartphone shipments fell 11 per cent to their lowest level since 2013 as memory chip shortages pushed up handset prices and weakened consumer demand.
Global smartphone shipments fell 11 per cent year-on-year in the second quarter of 2026, marking their weakest April–June performance since 2013 as a prolonged memory chip shortage raised handset prices and curbed consumer demand. According to a Reuters report, citing preliminary estimates from Counterpoint Research, the shortage is expected to continue weighing on the market.
Memory chip prices continued to rise as suppliers prioritised artificial intelligence (AI) data centre customers over consumer electronics, forcing smartphone makers to pass on higher component costs through price increases, particularly for entry- and mid-range devices.
Apple bucked the broader market slowdown, posting a three per cent increase in shipments and raising its global market share to a record 20 per cent. The growth was driven by resilient demand for its premium iPhone lineup and stable pricing, although analysts expect price increases in the coming months.
Samsung regained the top position with a 24 per cent global market share, supported by strong sales of its Galaxy S26 series, improved product availability and fewer price increases in key markets such as India and the Middle East. Meanwhile, Xiaomi, Oppo and vivo recorded the sharpest shipment declines among the top five smartphone vendors due to their heavier exposure to entry- and mid-range segments.
Counterpoint Research expects global smartphone shipments to decline by about 14 per cent this year and said the memory chip shortage is likely to persist into 2027.
“Memory prices extended their climb as suppliers prioritised AI data centre customers over consumer electronics,” Reuters reported, citing Counterpoint Research.
