Smartphone Shipments Fall to 2012 Low Amid Memory Chip Crunch
Global smartphone shipments fell 20% year-on-year in the third quarter of 2026, reaching their lowest Q3 level since 2012, according to Counterpoint Research. A memory chip shortage, partly caused by AI infrastructure demand, has increased component costs and pushed retail prices up about 20% in 2026. Samsung led the market with a 23% share, while Apple held 22%.
Counterpoint Research’s preliminary data put third-quarter 2026 global smartphone shipments 20% below a year earlier, the weakest Q3 since 2012. The memory-chip shortage, intensified by AI infrastructure demand, raised component expenses and contributed to roughly 20% higher retail prices during 2026.
Samsung remained the largest vendor with 23% share, while Apple reached 22%, its first Q3 above 20% despite fewer shipments. Xiaomi fell over 30% to 10%; Oppo and vivo each declined more than 20%, holding 9% and 8%. Brands shifted toward profitability, trimmed lower-margin products, and reduced exposure to weaker markets.
People shopping for budget and mid-range phones may be most affected, as higher retail prices could delay upgrades or reduce purchases. Manufacturers may keep trimming lower-margin products and prioritizing profitability, potentially