Smartphone Shipments Plummet: What’s Behind the 11% Decline in Q2 2026?
Significant Drop in Smartphone Shipments
New Delhi: A recent report indicates that global smartphone shipments fell by 11% year-on-year during the second quarter of 2026, marking the lowest figures for this period since 2013. This decline is largely attributed to a worsening memory shortage that has become a significant obstacle for the industry.
Preliminary data from Counterpoint Research's Market Monitor reveals that prices for DRAM and NAND memory continued to rise throughout the quarter. Memory suppliers have prioritized demand from AI data centers over consumer electronics, leading manufacturers to increase prices for consumers, especially for entry-level and mid-range devices. Samsung regained its position as the world's leading smartphone brand with a 24% market share in Q2, showing the most substantial growth among the top five brands. The company performed relatively well in markets like India and the Middle East, aided by better product availability, minimal price increases, and aggressive summer promotions that boosted flagship sales.
Apple also saw a 3% increase in shipments year-on-year during this quarter, achieving a record market share of 20%. Notably, it was the only major manufacturer that did not raise smartphone prices during this period.
According to senior analyst Shilpi Jain, the ongoing global memory crisis has become the primary factor hindering the smartphone industry. What began as a component shortage last year has escalated into a significant demand issue. Entry-level and mid-range devices, which represent a large portion of global smartphone sales, are becoming economically unviable at previous price points.
In addition to the memory shortage, geopolitical tensions in the Middle East have driven up oil and shipping costs, further contributing to rising smartphone prices. This situation coincides with a broader economic squeeze characterized by slower global growth, increased inflation, and historically low consumer sentiment, which has particularly affected price-sensitive buyers. The outlook for the remainder of 2026 appears bleak, with Counterpoint projecting a total decline of around 14% in global smartphone shipments for the year, and the memory shortage is expected to continue into 2027.