Global phone shipments plummeted 20% year over year in the third quarter of 2026, the lowest level in 14 years, according to new research from Counterpoint Research. The firm says the extreme memory shortage is pushing the smartphone market into a more selective phase, with the shortage of DRAM and NAND memory, driven by AI demand, a key factor behind the decline.
Samsung retained the number one spot despite a 3% year-over-year decline, and its market share reportedly rose 23%, the largest share gain among major OEMs. Researchers attribute this to strong sales of the Galaxy Z Fold 8 and Fold 8 Ultra, as well as the Galaxy A series. Apple ranked second, while its iPhone 18 lineup, which offers only the 18 Pro and 18 Pro Max, is seen as contributing to its decline. Chinese OEMs Xiaomi, OPPO, and Vivo rounded out the top five, each posting significant declines of their own.
Consumer behavior has also shifted. Counterpoint senior analyst Shilpi Jain said consumers are holding on to their devices longer than expected, increasingly considering refurbished phones and prioritizing higher-value devices. Omdia had already reported a 4% year-over-year dip in the second quarter, and both firms expect little relief in the fourth quarter.
The budget segment is under pressure as well. Counterpoint notes that OEMs are shifting focus toward profitability over shipment volume amid elevated component costs. Samsung is reportedly asking suppliers to cut fourth-quarter phone production by 20% to 30%, and analysts do not expect a recovery until component costs and supply conditions improve.
Source: Android Central · Summarized by HeadlinesBriefing