Smartphone Shipments Slump to Lowest Q2 Level in 13 Years

Global smartphone shipments tumbled 11% YoY in 2Q26, reaching the lowest second-quarter levels since 2013, according to preliminary estimates from Counterpoint Research. The memory shortage deepened and emerged as the dominant drag on the industry. DRAM and NAND prices continued to balloon through the quarter as memory suppliers kept prioritizing AI data center demand over consumer electronics, forcing OEMs to pass rising Bill of Materials (BOM) costs onto consumers via repeated price hikes, particularly on entry and mid-tier devices.

"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. The entry and mid-tier devices, which account for a majority of the world’s smartphone volumes and are the most exposed to BOM economics, become structurally unfeasible at previous price points. We see OEMs responding in different ways: some 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, and a few are simply pulling back on launches and production. Alongside the memory shortage, geopolitical tensions in the Middle East bumped up oil and shipping costs, further inflating smartphone prices. This coincided with a broader macro squeeze, slower global growth, higher inflation, and record-low consumer sentiment, which hit price-sensitive buyers the hardest," said Shilpi Jain, Senior Analyst at Counterpoint Research.

Samsung reclaimed its global No.1 position with a 24% share in Q2 and recorded the strongest growth among top five brands. Samsung held up relatively well in India and the Middle East, supported by better product availability, fewer price hikes, and aggressive summer promotions that complemented flagship momentum. Samsung’s vertical integration, expanded AI portfolio, and refreshed product lineup helped sustain growth despite weaker demand in the entry and mid-range segments. Apple’s shipments grew 3% during the quarter, while its market share climbed to a record 20%. It was also the only major OEM to avoid smartphone price hikes during the quarter.

Xiaomi, OPPO and vivo each recorded double-digit percentage shipment declines due to increased market volatility stemming from rising memory costs, which weighed on demand in the price-sensitive entry and mid-range segments. Considering their greater exposure to these tiers, all three brands were disproportionately affected as consumers delayed purchases, traded down to older-generation devices, or extended replacement cycles. However, Xiaomi streamlined its portfolio and eased retailer financing terms to protect volumes, which helped it capture a 12% market share. OPPO and vivo ranked fourth and fifth in the market, capturing an 11% and 8% shipment share, respectively. Meanwhile, beyond the top five brands, Google and Huawei witnessed significant shipment growth in 2Q26, rising 16% and 6%, respectively.

The outlook for the rest of 2026 remains challenging. Counterpoint Research continues to expect global smartphone shipments to decline substantially, with the global memory shortage expected to persist in 2027.  OEMs are likely to keep prioritizing value over volume, trimming low-margin models, pushing configuration and storage-tier adjustments, and leaning further into refurbished and previous-generation devices to retain budget-conscious buyers. Premiumization is expected to hold up relatively well throughout the remainder of the year, supported by financing, ecosystem loyalty, and AI-led retail experiences. However, overall demand recovery is unlikely until memory supply conditions improve substantially.