Global smartphone shipments fell 20 percent year-over-year in the third quarter, their lowest Q3 level since 2012, according to market analysis firm Counterpoint Research. The firm says relentless increases in DRAM and NAND pricing have sharply inflated material costs, worsening existing supply shortages and significantly disrupting shipments.
Manufacturers are passing those costs on to consumers. Global retail smartphone prices are up 20 percent since the start of the year, with no sign of a course correction soon. Counterpoint says the memory shortage is also changing consumer behavior. People are holding onto their existing phones longer and increasingly considering refurbished devices, while some are opting for more expensive premium models. Manufacturers are adjusting their strategies to protect profitability.
The shortages are reshaping the industry's leading players. Samsung remains the world's largest phone maker, with its market share rising four percentage points to 23 percent despite a three percent decline in shipment volume. Counterpoint credits Samsung's performance partly to robust early demand for the Galaxy Fold 8, released in early August. Apple also had a strong quarter, capturing more than 20 percent of the market for the first time in any Q3. Its share rose from 18 percent to 22 percent year-over-year, despite a decline in shipment volume and before the base iPhone 18 has launched. Counterpoint attributes this to a strong iPhone 18 Pro launch and sustained momentum from the iPhone 17.
China's trio of Xiaomi, Oppo and Vivo had a difficult quarter. Xiaomi's shipments fell more than 30 percent year-over-year, dropping its market share to 10 percent from 14 percent a year earlier. Oppo and Vivo saw shipments drop more than 20 percent, leaving their market shares at 9 percent and 8 percent, respectively.
Looking ahead, Counterpoint says the outlook for the rest of 2026 remains challenging, with a greater focus on premium devices likely to continue.
Source: Engadget · Summarized by HeadlinesBriefing