Global smartphone shipments fell 11% year‑on‑year in the second quarter of 2026, the weakest quarterly result since 2013, according to data from Counterpoint Research. The decline was driven primarily by a persistent shortage of DRAM and NAND memory chips, as suppliers prioritized the needs of artificial‑intelligence data centers over consumer electronics. That shift pushed up manufacturing costs and disproportionately affected entry‑level and mid‑range phones, where profit margins are already narrow.
Rising logistics costs, inflation and weakening consumer demand added further pressure, forcing several manufacturers to raise prices or restructure their product mixes.
Samsung reclaims top position
Samsung regained the number one position with a 24% global market share and posted the fastest year‑on‑year growth among the top five vendors. The company benefited from avoiding steep price increases in key regions such as India and the Middle East, running aggressive seasonal promotions, and the strong demand for the Galaxy S26 series.
The Galaxy S26 Ultra was the quarter’s best‑selling model; its display with a privacy filter and built‑in AI features helped offset some of the demand softness seen in lower price segments.
Apple grows without raising prices
Apple increased shipments by 3% in the quarter, lifting its market share to a quarterly record 20%. Counterpoint noted that Apple was the only major player that did not raise prices despite rising costs. The iPhone 17 series remained the world’s most popular smartphone family, although sales of older iPhone models were constrained because the company diverted scarce components to produce newer devices.
Other vendors struggle
Xiaomi, Oppo and Vivo all suffered double‑digit declines as higher memory prices hit entry and mid‑range models the hardest. Oppo closed the quarter with an 11% share and Vivo with 8%. Xiaomi maintained a 12% share by restructuring its product lineup and improving reseller financing terms.
Google fell out of the top five manufacturers, but its shipments rose 16% thanks to demand for the Pixel 10 and Pixel 10a. Huawei achieved 6% growth, buoyed by the Mate 80, Nova 15 and Enjoy 90 series.
Why this matters
The weak second quarter highlights how changes in chip supply chains — particularly the AI‑driven prioritization of DRAM and NAND — directly affect smartphone manufacturers. Different pricing strategies, regional approaches and promotional tactics determined which companies could gain ground amid constrained supply and softer consumer demand.
(Source: Counterpoint Research data and related market reports for Q2 2026.)
