Global smartphone shipments fell 20% year on year in the third quarter of 2026, their worst third-quarter performance in 14 years, as soaring memory chip costs and supply shortages forced manufacturers to raise prices and cut volumes, preliminary estimates from Counterpoint Research showed on Monday.
Rising memory component prices — driven by AI infrastructure projects cornering supplies — have inflated bill-of-materials costs and deepened shortages, disrupting shipments across the industry, The Hindu reported on October 12. Makers have passed the higher component costs on to buyers, pushing global smartphone retail prices up by 20% so far in 2026 and lifting average selling prices.
Samsung holds the top spot, Apple gains share
Samsung retained its position as the world's largest smartphone maker with a 23% market share, even though its shipments fell 3% from a year earlier, helped by demand for its Galaxy Z Fold8 series, Counterpoint said. Apple's share reached 22%, crossing 20% for the first time in any third quarter, despite a year-on-year decline in shipments — a drop largely attributed to the absence of a base iPhone 18 model this cycle.
Chinese brands hit hardest
Oppo and Vivo each saw shipments decline more than 20%, with their market shares falling to 9% and 8% respectively, after both raised prices across entry and mid-range portfolios. Xiaomi's shipments fell more than 30%, cutting its share to 10% as the company reduced exposure to lower-priced devices and some overseas markets to protect margins.
Oppo has consolidated its portfolio and operations across Oppo, Realme and OnePlus to reduce overlap and improve cost efficiency, while Vivo is focusing on India and China, leaning on its Y series for value-conscious buyers and expanding its premium X, V and S lines.
No quick recovery in sight
Counterpoint warned that production cuts, tighter portfolios and a focus on premium devices are likely to continue. "A meaningful recovery in overall volumes is unlikely until component costs and supply conditions improve," the research firm said. For consumers, the message is simpler: phones are getting more expensive, and the AI boom is partly to blame.
Sources:
- The Hindu: Global smartphone shipments plunge 20% during Q3 2026
- Indian Express: Global smartphone shipments record worst third quarter in 14 years
- The Hindu BusinessLine: Global smartphone shipments record worst third quarter in 14 years
Rising memory component prices — driven by AI infrastructure projects cornering supplies — have inflated bill-of-materials costs and deepened shortages, disrupting shipments across the industry, The Hindu reported on October 12. Makers have passed the higher component costs on to buyers, pushing global smartphone retail prices up by 20% so far in 2026 and lifting average selling prices.
Samsung holds the top spot, Apple gains share
Samsung retained its position as the world's largest smartphone maker with a 23% market share, even though its shipments fell 3% from a year earlier, helped by demand for its Galaxy Z Fold8 series, Counterpoint said. Apple's share reached 22%, crossing 20% for the first time in any third quarter, despite a year-on-year decline in shipments — a drop largely attributed to the absence of a base iPhone 18 model this cycle.
Chinese brands hit hardest
Oppo and Vivo each saw shipments decline more than 20%, with their market shares falling to 9% and 8% respectively, after both raised prices across entry and mid-range portfolios. Xiaomi's shipments fell more than 30%, cutting its share to 10% as the company reduced exposure to lower-priced devices and some overseas markets to protect margins.
Oppo has consolidated its portfolio and operations across Oppo, Realme and OnePlus to reduce overlap and improve cost efficiency, while Vivo is focusing on India and China, leaning on its Y series for value-conscious buyers and expanding its premium X, V and S lines.
No quick recovery in sight
Counterpoint warned that production cuts, tighter portfolios and a focus on premium devices are likely to continue. "A meaningful recovery in overall volumes is unlikely until component costs and supply conditions improve," the research firm said. For consumers, the message is simpler: phones are getting more expensive, and the AI boom is partly to blame.
Sources:
- The Hindu: Global smartphone shipments plunge 20% during Q3 2026
- Indian Express: Global smartphone shipments record worst third quarter in 14 years
- The Hindu BusinessLine: Global smartphone shipments record worst third quarter in 14 years
