Global Smartphone Shipments Sink 11% In Q2 To Lowest Level Since 2013

Global smartphone shipments fell 11% year on year in the second quarter of 2026 to their lowest April-to-June level since 2013, according to preliminary estimates from Counterpoint Research, as a prolonged memory chip shortage pushed up handset prices and weakened consumer demand.Shipments decline amid memory shortageThe downturn reflects the impact of an ongoing memory chip shortage, which has driven up production costs and smartphone prices. The research said that chip prices surged throughout the quarter as major memory suppliers continuously prioritized high-margin AI data center demand over traditional consumer electronics. According to Counterpoint, manufacturers have increasingly passed higher component costs on to consumers through price increases, particularly in the entry- and mid-range segments where thinner margins leave less room to absorb rising expenses."What started as a components issue last year is now a full-blown demand issue. The entry and mid-tier devices, which account for a majority of the world’s smartphone volumes and are the most exposed to Bill of Materials (BOM) economics, become structurally unfeasible at previous price points," stated Shilpi Jain, senior analyst at Counterpoint.Jain added that some manufacturers are increasing prices and accepting margin pressure, while others are extending the lifecycle of older-generation models and using promotions to retain budget-conscious buyers, while noting that a few are pulling back on launches and production.Compounding the crisis, geopolitical tensions in the Middle East have driven up oil prices and shipping costs, further increasing smartphone prices. Market breakdownEven as the overall market contracted, Samsung reclaimed its position as the world's largest smartphone vendor with a 24% market share. The South Korean brand drove growth via strong Middle East and India promotions alongside strong demand for its flagship Galaxy S26 Ultra. Its vertically integrated supply chain successfully insulated the company from wider slowdowns in the budget segment.Apple secured a record 20% market share with 3% shipment growth, standing out as the only major vendor to freeze retail prices despite the global chip crunch. Sustained demand for the flagship iPhone 17 series offset softer legacy sales and localized dips in China. Xiaomi captured a 12% market share despite a double-digit shipment drop triggered by rising component costs in its core budget tiers. OPPO (11% share) and vivo (8% share) both suffered double-digit declines as component cost inflation pinched their price-sensitive portfolios. While price hikes pushed several key vivo models entirely out of their target brackets, OPPO used steady Reno and A-series sales to cushion its decline.Beyond the top five, Google and Huawei posted impressive shipment surges of 16% and 6%, respectively. Google's gains were driven by the Pixel 10 lineup in mature markets, while Huawei found success through domestic demand for its Mate 80 and Enjoy 90 series.Outlook The global smartphone market faces a challenging outlook, with Counterpoint projecting a 14% shipment decline for full-year 2026 as the memory shortage stretches into 2027. To survive the crunch, Counterpoint expects manufacturers will prioritize value over volume by cutting low-margin budget models and pushing refurbished units, while premium sales remain insulated by financing options and AI features until chip supplies recover.