Global smartphone shipments declined 20% year-on-year in the third quarter of 2026, hitting their lowest Q3 level since 2012, according to preliminary estimates by Counterpoint Research. The decline came as a sharp rise in memory chip prices pushed up device costs and disrupted supplies.
Higher prices of DRAM and NAND memory chips increased the bill of materials (BOM), or the cost of components used to make smartphones, forcing manufacturers to raise retail prices. Smartphone prices have risen around 20% globally so far in 2026, further squeezing demand, the research firm said.
Consumers are now holding on to their existing phones for longer, considering refurbished devices and prioritising higher-value models. Smartphone makers, meanwhile, are adjusting their product portfolios and pricing to protect profit margins. This has put greater pressure on budget and mid-range phones, while demand for premium devices has remained relatively resilient.
Samsung retains top spot with 23% share
Samsung retained its top position in the global smartphone market, with a 23% share in Q3, even as its shipments fell 3% year-on-year. Its share increased on the back of a shift towards higher-priced devices and strong initial demand for the Galaxy Z Fold8 series. Stable component supplies also supported its mid-range Galaxy A series in emerging markets.
Apple’s market share reaches 22%
Apple’s market share crossed 20% for the first time in any third quarter, reaching 22%, despite a decline in shipments. The fall was partly due to the absence of a base iPhone 18 model, which resulted in a smaller initial supply to sales channels compared with the full iPhone 17 line-up launched a year earlier. However, the iPhone 18 Pro models recorded stronger initial demand, particularly in China and India, while continued sales of the iPhone 17 series helped limit the decline.
Xiaomi’s share rises to 12%
Xiaomi’s market share stood at 12% after the company cut its exposure to lower-priced devices and some overseas markets to avoid selling phones at unprofitable margins. It continued to expand in China’s upper mid-range and premium segments, supported by demand for its Xiaomi 18 series and foldable devices.
OPPO, vivo shipments fall over 20%
Chinese smartphone makers OPPO and vivo recorded shipment declines of more than 20% year-on-year, with their respective market shares falling to 9% and 8%. Both companies raised prices across entry-level and mid-range models to offset higher memory costs.
OPPO also consolidated operations across OPPO, realme and OnePlus to reduce overlap and improve cost efficiency. Vivo focused on India and China, strengthening its budget Y series while expanding its premium X, V and S series. However, price increases pushed some budget models out of key price bands, while supply shortages further constrained shipments.
Smartphone market outlook remains weak
Counterpoint expects the market to remain under pressure for the rest of 2026, as smartphone makers prioritise profitability over shipment volumes. Production cuts, tighter product portfolios and a greater focus on premium devices are likely to continue. A meaningful recovery in shipments is unlikely until memory costs ease and component supplies improve.