Stock Markets July 13, 2026 08:50 AM

Smartphone Shipments Fall to Lowest Q2 Since 2013 as Memory Shortage Elevates Prices

Component constraints lift memory prices, squeezing demand for entry- and mid-tier devices while Apple and Samsung expand share

By Priya Menon
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Global smartphone shipments fell 11% in the second quarter to their weakest level for that period since 2013, driven by rising memory prices caused by supplier prioritization of AI data center orders. Apple and Samsung gained share as higher component costs and price sensitivity hit entry- and mid-range vendors, and Counterpoint Research expects the memory shortage to persist into 2027 with full-year shipments down about 14%.

Smartphone Shipments Fall to Lowest Q2 Since 2013 as Memory Shortage Elevates Prices
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Key Points

  • Global smartphone shipments declined 11% in Q2, the weakest Q2 since 2013, driven by a memory chip shortage.
  • Apple grew shipments by 3% to a record 20% global market share by maintaining iPhone prices; Samsung regained the top spot with a 24% share supported by Galaxy S26 sales and improved availability.
  • Entry-level and mid-range focused vendors - notably Xiaomi, Oppo and Vivo - experienced the largest shipment drops as rising memory prices hit those segments hardest.

Early estimates from Counterpoint Research indicate global smartphone shipments declined 11% in the second quarter, reaching the lowest Q2 level since 2013. The research firm attributes the drop to a memory chip shortage that has pushed component prices higher and undermined consumer demand.

Apple increased shipments by 3% during the quarter, reaching a record 20% share of the global smartphone market. The company sustained steady demand for its premium iPhone lineup by keeping retail prices unchanged. The article notes that analysts expect price increases in the months ahead.

Counterpoint reports that memory prices continued to climb as suppliers directed capacity toward AI data center customers rather than consumer electronics. That shift raised component costs passed on to handset makers and ultimately to consumers, a dynamic that has been most acute for entry-level and mid-range devices.

Samsung returned to the top position with a 24% market share in the quarter. The firm benefited from robust sales of its Galaxy S26 series flagships, improved product availability and relatively smaller price increases in markets such as India and the Middle East.

Among the five largest smartphone vendors, Xiaomi, Oppo and Vivo recorded the steepest shipment declines. Counterpoint highlights that these three companies have greater exposure to entry-level and mid-range segments, making them more sensitive to higher memory costs and price-driven demand weakness.

The analyst group maintained its forecast that global smartphone shipments will fall by roughly 14% for the full year. In its outlook, Counterpoint said the memory shortage is likely to persist into 2027, a continuation of the supply-side constraint that has pressured volumes and altered competitive dynamics.


Implications - The combination of constrained memory supply and rising prices has dampened consumer demand overall while advantaging vendors with strong premium portfolios or better inventory position. The supply-side focus on AI data center demand is reshaping component allocation and pricing across the smartphone value chain.

Risks

  • Prolonged memory shortage - Counterpoint expects the memory supply squeeze to continue into 2027, posing ongoing cost pressure for consumer electronics and smartphone makers.
  • Weaker demand in lower-priced segments - Rising component costs could further depress shipments for entry- and mid-range devices, affecting vendors concentrated in those tiers.
  • Forecasted volume decline - Counterpoint maintained a full-year forecast of around a 14% decline in global smartphone shipments, signaling sustained revenue and production risks across the mobile supply chain.

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