Global smartphone shipments fell 11% year over year in the second quarter of 2026, marking the weakest second-quarter performance the industry has recorded since 2013. Preliminary figures from Counterpoint Research point to the ongoing memory component shortage as the central factor behind the contraction, driving up production costs and forcing manufacturers to increase retail prices across many segments of the market.
Budget segment bears the brunt of rising costs
The memory crisis has not affected all companies equally. Vendors with heavy exposure to affordable handsets have been under disproportionate strain, as price hikes in this category have led cost-conscious consumers to postpone upgrading their devices. The result has been a pronounced softening of demand at the lower end of the market, while premium models have so far proved more resilient.
Top-five rankings shift as Samsung reclaims the lead
Samsung regained the top global position with a 24% share of shipments, supported by strong Galaxy A-series volumes and steady demand across multiple regions. Apple captured a record 20% share for a second quarter, underscoring continued iPhone strength even as the wider market slows. Xiaomi followed in third place at 12%, with Oppo holding an 11% share and Vivo rounding out the top five at 8%. The standings reflect how brands with diverse portfolios and stronger footholds in the flagship space are better positioned to absorb supply-side shocks.
Components, pricing, and the path ahead
Looking toward the remainder of 2026, Counterpoint expects industry conditions to remain tight as memory supply constraints persist. While premium smartphones are forecast to outperform entry-level models, analysts caution that sustained component shortages and elevated retail price points will continue weighing on consumer demand until supply chains improve. In this environment, some buyers are already turning to refurbished devices as a more affordable alternative, a trend that may further reshape the competitive landscape before the cycle turns.
Source: counterpointresearch.com