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Global Smartphone Shipments Fall to 13-Year Low on Chip Shortage, Counterpoint Reports
Summary
Global smartphone shipments fell 11% in the second quarter, hitting their lowest level for the period since 2013, as a memory chip shortage drove up prices and dampened consumer demand, according to data from Counterpoint Research. Apple bucked the trend with shipment growth, while Samsung reclaimed the top market position.
Global smartphone shipments plunged 11% year-over-year in the second quarter, marking the lowest level for that period since 2013, according to preliminary estimates from Counterpoint Research. The significant downturn is attributed to a persistent memory chip shortage that has increased handset prices and weakened consumer demand.
Market Leaders Diverge
While the overall market contracted, performance among the top manufacturers varied. Samsung returned to the number one position, capturing a 24% global market share. The firm's performance was bolstered by strong sales of its flagship Galaxy S26 series, improved product availability, and more moderate price increases in key markets like India and the Middle East.
Apple also defied the market trend, increasing its shipments by 3% and achieving a record 20% global market share for the quarter. According to the report, Apple maintained stable demand for its premium iPhone lineup by keeping prices unchanged, though analysts anticipate future price increases.
Chip Shortage Squeezes Mid-Range Market
The core issue pressuring the market is rising memory chip prices, as suppliers prioritize high-demand AI data center clients over the consumer electronics sector. This strategic shift has forced smartphone makers to pass on higher component costs to consumers, a move that has disproportionately impacted the entry-level and mid-range segments of the market.
AdConsequently, manufacturers with greater exposure to these more price-sensitive segments saw the most significant downturns. According to Counterpoint, the largest shipment declines among the top five vendors were recorded by:
- Xiaomi
- Oppo
- Vivo
Industry Outlook
Counterpoint Research maintained its forecast for a full-year decline of approximately 14% in global smartphone shipments for the current year. The research firm noted that the underlying memory shortage is expected to be a continuing headwind for the industry, likely persisting into 2027.