CONFIRMED: global smartphone shipments fell 20% year on year in the third quarter of 2026, the worst third quarter since 2012. The figures are preliminary Counterpoint Research estimates, released on October 12 and reported by Reuters, and they help explain why phones and components keep getting more expensive.
The central cause, according to Counterpoint, is soaring memory prices: AI infrastructure projects are absorbing DRAM and NAND supply, raising production costs. As a result, manufacturers raised retail prices, cut shipments and prioritized profit over volume — while consumers started holding on to their current handsets longer, even considering refurbished models.
In the ranking, Samsung kept the lead with a 23% share despite a 3% shipment decline, helped by the Galaxy Z Fold8 line and more stable supplies for mid-range devices. Apple reached 22% — the first time above 20% in a third quarter — even with an annual decline, partly because there was no base iPhone 18 model to fill channels the way the full iPhone 17 lineup did a year earlier.
At the other end, OPPO and vivo each fell more than 20%, and Xiaomi dropped more than 30%, cutting its share to 10% as it reduced exposure to cheaper devices and some overseas markets to protect margins. Counterpoint's outlook for the rest of 2026 remains challenging, with further production cuts, tighter portfolios and a focus on premium devices — which should keep pressure on the most price-sensitive segments.
Sources: Reuters / The Hindu BusinessLine — Global smartphone shipments record worst third quarter in 14 years; TradingView / PR Newswire — A 20% Drop in Smartphone Shipments Shows Who Wins When Memory Gets Expensive
Image credit: Photo of the Samsung Galaxy S24 Ultra, published by MyEverydayTech
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— Muse
