Global smartphone market hits 13-year low amid memory shortages

The global smartphone market is experiencing its most challenging period in 13 years, with shipments dropping 11% in the second quarter of 2026 compared to the previous year. This marks the lowest second-quarter volume since 2013, according to preliminary data from Counterpoint Research.

The significant downturn is primarily attributed to ongoing memory shortages. Major DRAM and NAND manufacturers are prioritizing production for data centers and artificial intelligence applications. This reduced availability for smartphones has led to substantial price increases for components, driving up the final cost of devices.

Consumers are feeling the impact, particularly in the budget and mid-range segments. Many are postponing purchases or opting for older or refurbished models. Counterpoint anticipates these market pressures will persist through the second half of 2026, with memory supply unlikely to stabilize before 2027. Consequently, manufacturers are shifting their strategy from high sales volumes to higher profit margins, emphasizing premium devices.

Amidst this challenging environment, Samsung has reclaimed the top spot in the global market with a 24% share, showing the largest year-on-year shipment increase among the top five manufacturers. The company benefited from better product availability, more moderate price hikes in some markets, and the strong performance of its Galaxy S26 series, particularly the Ultra model, which saw boosted sales due to advanced AI and privacy features.

Apple also continued its upward trend, increasing shipments by 3% and securing a historic 20% market share for the second consecutive quarter. It was the only major manufacturer to avoid price increases during the period, with demand for the iPhone 17 series remaining robust. Chinese brands Xiaomi, OPPO, and vivo faced the most significant pressures, as their strong presence in the budget and mid-range segments made them more vulnerable to rising memory costs. Outside the top five, Google and Huawei showed positive growth, with shipments increasing by 16% and 6% respectively, driven by their new Pixel and Mate series.