Global Smartphone Shipments Fall 11% in Q2 to 13-Year Low, Counterpoint Reports

Global smartphone shipments plunged 11% in the second quarter to the lowest level for the period in 13 years, according to preliminary data from Counterpoint Research. The sharp decline reflects a persistent memory chip shortage that is driving up handset prices and curbing consumer demand, particularly in the entry- and mid-range segments.

Premium Brands Weather the Storm

The market downturn was not uniform, with premium brands demonstrating greater resilience. Key takeaways from the report include:

• Samsung (KS:005930) reclaimed the top spot, capturing a 24% market share, buoyed by strong sales of its flagship Galaxy S26 series and stable pricing in key markets like India and the Middle East.
• Apple (NASDAQ:AAPL) was the only top vendor to grow, with shipments rising 3%. This pushed its market share to a record 20% for the quarter, supported by sustained demand for its high-end iPhones.
• Xiaomi (HK:1810), Oppo, and Vivo posted the steepest declines, as their concentration in the more price-sensitive device tiers made them more vulnerable to rising component costs and weakening consumer sentiment.

AI Demand Squeezes Smartphone Supply

The central issue pressuring the market is a supply-side crunch for memory chips. According to Counterpoint, semiconductor suppliers are prioritizing high-margin AI data center clients over the consumer electronics sector.

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This strategic shift has forced smartphone manufacturers to absorb higher component costs, which are increasingly being passed on to consumers. The resulting price hikes have had the most significant impact on demand for non-premium devices, which constitute the bulk of global sales volume.

Muted Outlook Signals Continued Headwinds

Counterpoint Research maintained its forecast for a full-year decline of approximately 14% in global smartphone shipments for 2026. The firm also projects that the underlying memory shortage is likely to persist into 2027, signaling a prolonged period of difficulty for the industry.

For investors, the data underscores a growing divergence in the market. Brands with strong premium portfolios appear better positioned to navigate the supply constraints and pricing pressures, while those dependent on high-volume, lower-margin sales face significant ongoing headwinds.