❯ Global smartphone shipments fell 20% in the third quarter as memory costs pushed prices up, while Apple’s share rose to 22%

The weakest third quarter in 14 yearsData published by Counterpoint Research on October 12 show global smartphone shipments fell 20% from a year earlier in the third quarter of 2026, the weakest third-quarter performance in 14 years. According to Developing Telecoms, the decline was in line with Counterpoint’s forecast.

Memory costs more, and so do phonesThe cause is rising memory chip prices. Phone makers passed higher DRAM and NAND costs on to buyers, average selling prices have risen 20% so far this year, and consumers are delaying upgrades or turning to refurbished devices. Counterpoint senior analyst Shilpi Jain said the market was only beginning to feel the full impact of the memory crisis. Premium models have held up relatively well.

Premium brands gain shareSamsung regained first place with a 23% share as its shipments fell 3%. Apple’s share rose to 22% from 18% a year earlier, though its shipments were also lower; Counterpoint tied that partly to the absence of a base iPhone 18 this year and to higher prices. Xiaomi’s shipments fell 30% and its share dropped from 14% to 10%. Oppo and Vivo each saw shipments fall more than 20%.

Makers protect profit firstCounterpoint expects the rest of 2026 to stay difficult, with makers putting profit ahead of volume by cutting production, trimming product lines and leaning toward premium devices. Shipments are unlikely to recover until component costs ease, and the firm has previously forecast that improvement may not begin until late 2027. How memory capacity is allocated decides whether low and mid-priced phones can still be built at their old prices.

▮ SIGNALConsumer electronics such as phones are paying for the memory chip shortage, and the hardest hit are models that depend on low prices and high volume.