Global smartphone market hits 13-year Q2 low amid RAM and memory supply crunch

Global smartphone shipments dropped to their weakest since 2013 in Q2 as a shortage of memory chips raised handset prices and hit consumer demand. According to a Counterpoint Research report, the market fell 3.1% from a year earlier, ending a run of nine straight quarters of growth.

Apple was an exception to the broader slowdown. Its shipments rose 3%, taking its global market share to a record 20%, supported by consistent demand for premium iPhones and stable pricing despite higher component costs.

Samsung returned to the top position with a 24% global market share, driven by strong sales of the Galaxy S26, improved product availability and fewer price hikes in key markets including India and the Middle East.

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Memory shortage adds to industry pressure

Counterpoint said cost pressures are increasing across the smartphone industry as memory makers give priority to AI data centre customers over consumer electronics companies. That shift has lifted component costs across the sector, with the sharpest impact seen in entry-level and mid-range smartphones, where brands have increasingly passed on the higher costs to buyers.

The research firm said prices of mobile LPDDR4 and LPDDR5 memory in the second quarter of 2026 are set to be nearly twice the levels seen in the fourth quarter of 2025. It expects the supply crunch to continue through the second half of 2027, as semiconductor production requires heavy investment and expanding capacity takes time.

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Budget brands face more strain, premium companies stay firmer

Xiaomi, Oppo and Vivo experienced the biggest shipment declines among the top five smartphone brands, reflecting their larger presence in the budget and mid-range segments.

Counterpoint said, “LPDDR4 supply is expected to decline by more than 40% in 2026 as fabs reallocate capacity toward AI-driven HBM and server DRAM, making it increasingly uneconomical to supply entry-level products. Globally, smartphone wholesale prices rose 14% in Q1, and the pace will sustain as pre-shock inventory is exhausted. Certain sub-$150 price tiers face effective permanent ejection from the market.”

The report said companies with integrated supply chains and premium-focused strategies, such as Apple and Samsung, are in a stronger position to handle the disruption. It added that Apple could take market share from rivals because of stable memory supplies and healthy margins, though analysts expect the company to raise prices in the coming months.

Counterpoint expects global smartphone shipments to fall about 14% this year, with a recovery likely in 2028 on the back of better memory supply, pent-up demand and future triggers such as 6G launches and AI-native devices.