Global smartphone shipments hit 13-year Q2 low amid memory chip crunch: Report

Global smartphone shipments fell to their lowest second-quarter level since 2013 as a prolonged memory chip shortage pushed up handset prices and weakened consumer demand, according to Counterpoint Research.

Apple bucked the broader smartphone market slowdown during the quarter, posting a 3% increase in shipments and raising its global market share to a record 20%. The growth was driven by resilient demand for its premium iPhone lineup and stable pricing despite rising component costs. However, analysts expect Apple to raise prices in the coming months.

Advertisement

The wider smartphone industry continued to face mounting cost pressures as memory suppliers prioritised AI data centre customers over consumer electronics manufacturers, pushing up component costs. The impact has been most severe in the entry- and mid-range segments, where brands have increasingly passed higher costs on to consumers.

Samsung reclaimed the top spot with a 24% global market share, driven by strong Galaxy S26 sales, improved product availability and fewer price increases in key markets such as India and the Middle East.

More from Tech

Meanwhile, Xiaomi, Oppo and Vivo posted the steepest shipment declines among the top five smartphone makers, reflecting their greater exposure to the budget and mid-range segments.

Counterpoint expects global smartphone shipments to decline around 14% this year, warning that the memory shortage could persist until 2027, keeping pressure on both manufacturers and consumers.

Advertisement

A deepening memory crisis

As highlighted by Counterpoint Research, the global smartphone market declined 3.1% year over year, marking its first contraction after nine consecutive quarters of growth. The research further notes that mobile LPDDR4/LPDDR5 memory prices in Q2 2026 are on track to nearly double compared with Q4 2025 levels. The supply squeeze is expected to persist through the second half of 2027, owing to the capital-intensive nature of semiconductor manufacturing and the long lead times involved in expanding production.

The impact has been particularly severe in the budget smartphone segment. According to the report, "LPDDR4 supply is expected to decline by more than 40% in 2026 as fabs reallocate capacity toward AI-driven HBM and server DRAM, making it increasingly uneconomical to supply entry-level products. Globally, smartphone wholesale prices rose 14% in Q1, and the pace will sustain as pre-shock inventory is exhausted. Certain sub-$150 price tiers face effective permanent ejection from the market."

Premium segment expected to remain resilient

The report highlights that companies with integrated supply chains and premiumisation strategies, such as Apple and Samsung, are better positioned to navigate the changing market dynamics.

According to Counterpoint, Apple is well placed to gain market share from rivals thanks to its stable memory supply and healthy profit margins, allowing it to delay price increases while maintaining its premium positioning—an advantage that could appeal to consumers.

Samsung is also expected to outperform the broader market due to its stable device availability, vertically integrated supply chain and consistent specifications across its smartphone portfolio.

The report concludes that the smartphone market is likely to rebound in 2028, supported by improving memory supplies, pent-up consumer demand, easing geopolitical and inflationary pressures, and the next major smartphone upgrade cycle.

It further notes that "the commercial launch of 6G networks in pioneer markets, including China, Japan and South Korea, by the end of the decade, along with the maturity of AI-native devices, will provide a further catalyst" for the industry's recovery.