Global smartphone shipments fell 20% year-on-year in the third quarter of 2026 to their lowest level for the period since 2012, as persistent memory shortages and rising component costs disrupted supply and pushed up retail prices.
This was revealed in preliminary estimates published by Counterpoint Research on Monday, which showed that smartphone retail prices have increased by 20% so far in 2026 as manufacturers pass higher memory costs on to consumers.
The research firm said rising prices for DRAM and NAND memory components had inflated bill of materials (BOM) costs, deepened supply shortages and disrupted shipments, forcing manufacturers to adjust shipment plans, raise prices and prioritise profitability over sales volumes.
The pressure is also changing how consumers approach smartphone purchases, as buyers hold on to their devices for longer and consider alternatives.
Counterpoint said this shift was widening the gap between premium and price-sensitive smartphone segments, as higher prices put greater pressure on affordability while demand for premium devices remained comparatively resilient.
For manufacturers, higher component costs have made it more difficult to maintain affordable prices, particularly in entry-level and mid-range segments, prompting changes to pricing and product portfolios.
Samsung retained its position as the world’s largest smartphone manufacturer in the third quarter, accounting for 23% of global shipments despite a 3% year-on-year decline in shipment volume.
Counterpoint said the iPhone 18 Pro models recorded a stronger launch than their predecessors, particularly in China and India, while continued momentum from the iPhone 17 series helped offset the shipment decline.
Xiaomi recorded a shipment decline of more than 30% year-on-year, reducing its share of the global smartphone market to 10%.
Counterpoint’s figures are preliminary estimates for the third quarter of 2026.
The latest decline in smartphone shipments comes amid rising memory-chip costs linked to growing demand from artificial intelligence infrastructure.
Nairametrics reported in February 2026 that global memory-chip shortages driven by AI demand could push smartphone prices up by 15% to 20% in the coming months if supply constraints persisted.
In September, Nairametrics also reported that the GSMA warned rising smartphone component costs could worsen affordability and deepen Nigeria’s mobile internet gap, particularly among lower-income consumers.
