Smartphone shipments hit 14-year third-quarter low

Global smartphone shipments fell 20% from a year earlier in the third quarter of 2026. That puts them at their lowest level for the period since 2012, according to preliminary estimates Counterpoint Research released on Monday. The research firm says soaring memory chip costs and supply shortages pushed manufacturers to raise prices and cut volumes.tribune+1

The drop shows how the AI boom is hitting consumer electronics. AI infrastructure projects are cornering memory supplies, which has driven up production costs. In response, phone makers have raised retail prices, shipped fewer units and put profits ahead of volume. Counterpoint says smartphone retail prices have risen 20% so far in 2026 as manufacturers pass higher memory costs on to buyers.nairametrics+1

Samsung and Apple gain share as rivals shrink

Samsung stayed in first place with a 23% market share, even though its shipments fell 3% from a year earlier. Counterpoint credited demand for the Galaxy Z Fold8 series and stable component supplies for Samsung's mid-range devices.tribune

Apple ↗ 1.29% reached a 22% share, the first time its third-quarter share has topped 20%. Its shipments still declined from a year earlier. Counterpoint said there was no base iPhone 18 model, so stores and distributors stocked fewer phones in the launch month than they did for the full iPhone 17 lineup a year ago.tribune

Chinese brands fell harder. OPPO and vivo each saw shipments drop more than 20%. Xiaomi fell more than 30%, cutting its share to 10%, as the company pulled back from lower-priced devices and some overseas markets to protect margins.nairametrics+1

Consumers hold on to their phones

Higher prices are changing how people buy. "Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritizing higher-value devices," said Counterpoint senior analyst Shilpi Jain.tribune

The slump continues a trend from earlier in the year. Counterpoint reported that shipments also fell in the second quarter of 2026. Revenue hit a record in that quarter, however, as the average selling price rose 17% from a year earlier.x

Tough outlook for the rest of 2026

Counterpoint does not expect a quick recovery. "The outlook for the remainder of 2026 remains challenging," the firm 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."tribune

The firm added that shipments are unlikely to recover in a meaningful way until component costs and supply conditions improve.nairametrics