Global smartphone shipments fall 20% as memory chip costs soar

Global smartphone shipments fell 20% year on year in the third quarter of 2026, their lowest level for a third quarter since 2012, according to preliminary estimates released on Monday by market research firm Counterpoint Research. Counterpoint said rising prices for memory chips, as artificial intelligence infrastructure projects take up supplies, have pushed up production costs. Manufacturers have responded by raising retail prices, cutting shipments and putting profit ahead of volume. "Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritising higher-value devices," said Counterpoint senior analyst Shilpi Jain. Samsung kept the top spot with a 23% market share, although its shipments fell 3%, according to Counterpoint. Apple's share reached 22%, the first time it has passed 20% in a third quarter, even though its shipments also declined. Xiaomi's shipments fell by more than 30%, and OPPO and vivo each recorded declines of more than 20%. In China, research firm IDC said on Tuesday that third-quarter shipments fell 15.4% to 57.9 million units, the sixth straight quarterly decline. IDC said Huawei was the only major vendor to post double-digit growth, leading the market with a 21% share. The figures are preliminary estimates, not final counts. "The outlook for the remainder of 2026 remains challenging," Counterpoint said.