Global phone shipments post worst third quarter since 2012

Global smartphone shipments fell 20% year on year in the third quarter of 2026. That is the lowest third-quarter total since 2012, according to preliminary estimates Counterpoint Research released on Monday. The research firm says rising memory chip costs and supply shortages squeezed phone makers. Reuters reported that AI infrastructure projects have cornered memory supplies, which has pushed up production costs and led manufacturers to raise retail prices, ship fewer phones and put profits ahead of volume.reuters+1

The fall comes as the memory shortage spreads across consumer electronics. Counterpoint said Q3 was "the second successive quarter to take the full brunt of the memory crisis." It added that steady increases in DRAM and NAND prices sharply raised component costs. Manufacturers passed those costs to buyers, and global smartphone retail prices are up 20% so far in 2026, the firm said.fourweekmba

Big brands gain share as volumes drop

Samsung stayed in first place with a 23% market share. Its shipments fell 3% from a year earlier. Demand for its Galaxy Z Fold8 series and steady component supplies for its mid-range phones helped the company.reuters

Apple ↗ 0.43% reached a 22% share, its first time above 20% in any third quarter, even though its shipments fell. Counterpoint said there was no base iPhone 18 model this cycle. That meant retailers stocked fewer phones in the launch month than they did for the full iPhone 17 lineup a year earlier. The firm added that the iPhone 18 Pro models launched more strongly than their predecessors, especially in China and India.appleworld+1

Chinese brands lost more ground. OPPO and vivo each saw shipments fall more than 20%. Xiaomi shipments dropped more than 30%, cutting its share to 10%, as the company pulled back from low-priced devices and some overseas markets to protect margins. A chart in Counterpoint's release puts Xiaomi's share at 14% a year earlier.fourweekmba+1

Consumers hold on to phones

"Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritizing higher-value devices," said Shilpi Jain, a senior analyst at Counterpoint. Counterpoint said the gap is widening between premium buyers, whose demand has held up, and price-sensitive buyers, who face rising prices.channelnewsasia+2

The same pressure is hitting computers. IDC reported last week that third-quarter PC shipments fell 20.1%.fourweekmba

The firm does not expect quick relief. "The outlook for the remainder of 2026 remains challenging," Counterpoint said. "Production cuts, tighter portfolios, and greater focus on premium devices are likely to continue, while price-sensitive segments face further pressure from higher device prices and limited availability of components."channelnewsasia