Global technology | October 13, 2026

Global smartphone shipments fell 20% year on year in the third quarter of 2026, reaching their lowest level for a third quarter since 2012, according to preliminary Counterpoint Research estimates reported by Reuters on October 12. Higher memory-chip prices and supply constraints linked to demand from AI infrastructure projects were among the pressures on manufacturers.

What the preliminary data shows

  • Global shipments: Down 20% year on year in Q3 2026.
  • Samsung: Retained the leading position with a 23% share, while shipments declined 3% year on year.
  • Apple: Reached a 22% share, although shipments declined year on year.
  • Other manufacturers: Reuters reported declines exceeding 20% for OPPO and vivo, while Xiaomi shipments fell by more than 30%.

The figures are preliminary market estimates, not a final audited count. Counterpoint attributed the downturn to rising memory costs and supply shortages, which have pushed vendors to protect profitability, reduce exposure to some lower-priced models and focus more on premium devices.

Why AI infrastructure affects phone prices

AI data centres consume large quantities of advanced memory and other components. When suppliers direct capacity toward higher-demand or higher-margin products, smartphone makers can face tighter availability and more expensive components. Manufacturers may respond by raising prices, changing product line-ups or shipping fewer units.

Consumers may hold onto devices longer, repair existing phones or consider refurbished models. The effect will vary by brand, region and price segment; the shipment decline does not mean every smartphone model experienced the same change in demand.

What to watch next

Future shipment reports, memory pricing, manufacturers’ quarterly results and holiday-season demand will help show whether the downturn continues. Market estimates can be revised as more data becomes available.

Sources

Reporting note: Q3 shipment figures cited here are preliminary estimates from Counterpoint Research as reported by Reuters.

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