Smartphone Shipments Drop 20% in Q3 2026 Amid Cost Surge

In the third quarter of 2026, global smartphone shipments experienced a 20% year-on-year decline, reaching their lowest level for the period since 2012, according to preliminary estimates from Counterpoint Research. This decline was attributed to persistent memory shortages and rising component costs, which have led to a 20% increase in smartphone retail prices as manufacturers passed on higher memory costs to consumers.

The rising prices of DRAM and NAND memory components inflated bill of materials costs, deepened supply shortages, and disrupted shipments. Consequently, manufacturers adjusted shipment plans, raised prices, and prioritized profitability over sales volumes.

This situation has altered consumer behavior, with buyers holding onto devices longer and considering alternatives. Samsung maintained its status as the largest smartphone manufacturer, accounting for 23% of global shipments despite a 3% decline in volume.

Xiaomi faced a more than 30% shipment decline, reducing its market share to 10%. The report also noted that rising memory-chip costs are linked to increased demand from artificial intelligence infrastructure.