Smartphone shipments dropped 20% year-on-year in Q3 2026, hitting the lowest third-quarter level in 14 years. According to Counterpoint Research data, the decline was caused by memory shortages that disrupted supply chains and raised costs.
Rising DRAM and NAND prices pushed production costs higher, forcing brands to increase retail prices by about 20% this year. Many buyers held onto their phones longer or turned to refurbished units, widening the gap between premium and budget models.
Samsung led the market with a 23% share, driven by strong demand for the Galaxy Z Fold8 and steady supply of its A series. Apple followed with a record 22% share, boosted by iPhone 18 Pro sales in China and India despite not releasing a base model.
Xiaomi held a 12% share, cutting exposure to low-price segments while gaining ground in China’s premium market with the Xiaomi 18 series and foldables.
OPPO and vivo both saw shipments fall more than 20%, with shares at 9% and 8%. Price hikes and stock shortages weighed down their performance.
Also Read: Smartphone memory prices surge 300% YoY in Q2 2026, says report
Brands are focusing on profitability instead of shipping more phones. They plan to cut production and release fewer models in the next months. Shipments will only recover once memory costs go down, so for now buyers can expect higher prices and fewer choices.
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