Global Smartphone Shipments Hit 13-Year Low in Q2
Alina Collins
Global smartphone shipments fell 11% year-on-year in Q2 2026, the weakest quarter since 2013 — memory-chip capacity diverted to AI data centers is pushing up handset prices, crushing mid-to-low-end demand with no relief in sight.
Why did shipments hit a 13-year low?
Counterpoint Research's preliminary estimate puts Q2 2026 global smartphone shipments at 11% below the year-ago quarter — the worst since 2013.
The single driver: a persistent shortage of memory chips — the components that store data inside every phone — is pushing handset prices higher.
This means → consumers didn't suddenly stop wanting phones; the same phone now costs more, and mid-to-low-end buyers are the first priced out.
Why aren't there enough chips?
Memory-chip makers are prioritizing capacity for AI data-center clients, who pay more and order at scale.
That squeezes consumer-electronics supply; manufacturers pass the cost on to buyers, hitting budget devices hardest.
In plain terms = AI is eating the chip capacity that used to go to phones — handset makers can't outbid AI companies, so consumers foot the bill.
How are Apple and Samsung bucking the trend?
Apple grew shipments 3% year-on-year, lifting its global share to 20% — a record — backed by resilient high-end iPhone demand and unchanged pricing.
Samsung reclaimed the top spot at 24% share, driven by strong Galaxy S26 flagship sales and relatively restrained price hikes in India and the Middle East.
This means → premium brands have pricing power and brand cushion; chip inflation hurts them far less than mid-to-low-end rivals.
Who is hurting the most?
Xiaomi, OPPO, and vivo posted the steepest shipment declines among the top five.
The reason is straightforward: all three skew heavily toward mid-to-low-end models, giving them the greatest exposure to memory-chip price increases.
In plain terms = brands that sell affordable phones saw costs rise but couldn't raise prices to match — squeezed on both ends.
What happens next?
Counterpoint maintains its full-year forecast of a roughly 14% decline in global shipments.
The memory-chip shortage could persist into 2027.
This means → industry pain has not peaked; the recovery window for mid-to-low-end supply chains remains unclear — no near-term turning point is in sight.
Content is for reference only, not financial advice.