Counterpoint Research says global smartphone shipments fell 11 per cent in Q2 2026 as memory shortages pushed up handset prices, with Samsung benefiting from resilient demand in India and the Middle East
Global smartphone shipments fell 11 per cent year-on-year in the second quarter of 2026, marking the weakest second-quarter performance since 2013, as an acute shortage of DRAM and NAND memory chips drove up production costs and dampened consumer demand, according to Counterpoint Research.
The research firm said the prolonged memory crunch has become the industry’s biggest challenge, forcing smartphone manufacturers to raise prices, particularly in the entry- and mid-range segments that account for the majority of global volumes. Against this backdrop, Samsung emerged as the biggest beneficiary, supported by relatively resilient demand in India and the Middle East.
Samsung reclaimed the top position in the global smartphone market during the quarter with a 24 per cent shipment share, recording the strongest year-on-year growth among the top five smartphone brands. Counterpoint attributed the company’s performance to better product availability, fewer price increases and aggressive promotional campaigns in markets such as India, alongside strong demand for its flagship Galaxy S26 series.
“The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry. What started as a components issue last year is now a full-blown demand issue,” said Shilpi Jain, Senior Analyst at Counterpoint Research.
According to Jain, soaring DRAM and NAND prices have made it increasingly difficult for manufacturers to sustain earlier price points, particularly for budget and mid-tier smartphones. At the same time, higher oil and shipping costs stemming from geopolitical tensions in the Middle East, coupled with slowing economic growth and weak consumer sentiment, have further weighed on demand.
For India, where affordable and mid-range smartphones account for a significant share of the market, rising memory costs could add pressure to pricing and replacement demand, although Counterpoint did not release India-specific shipment figures for the quarter.
Apple was the only major smartphone maker to avoid raising handset prices during the quarter. Its global shipments grew 3 per cent year-on-year, lifting its market share to a record 20 per cent for a second quarter. Counterpoint said continued demand for the iPhone 17 series helped drive growth despite softer sales in China. Chinese smartphone makers Xiaomi, OPPO and vivo, which have a strong presence in India, recorded the steepest shipment declines among the top five brands as higher memory costs disproportionately affected their entry- and mid-range portfolios.
Counterpoint said consumers increasingly delayed smartphone purchases, opted for older-generation devices or extended replacement cycles as handset prices rose.
Despite the broader slowdown, Xiaomi retained a 12 per cent global shipment share after streamlining its product portfolio and easing retailer financing. OPPO and vivo captured 11 per cent and 8 per cent market share, respectively, but continued to face weak demand across several key markets.Outside the top five, Google and Huawei posted shipment growth of 16 per cent and 6 per cent, respectively, supported by new device launches.
Looking ahead, Counterpoint expects the smartphone market to remain under pressure through the rest of 2026, with the global memory shortage likely to persist into 2027. The research firm said manufacturers are expected to prioritise profitability over shipment volumes by reducing low-margin models, adjusting storage configurations and relying more on refurbished and previous-generation devices. While premium smartphones are expected to remain relatively resilient, supported by financing options, ecosystem loyalty and AI-driven features, a broader recovery in global demand is unlikely until memory supply conditions improve.
