Home / Technology / Memory Crunch Crushes Smartphone Market to Decade Low
Memory Crunch Crushes Smartphone Market to Decade Low
13 Oct
Summary
- Smartphone shipments hit lowest Q3 level since 2012 due to memory shortages.
- Global retail smartphone prices increased by 20 percent this year.
- Samsung and Apple gained market share despite shipment volume declines.
The global smartphone market is experiencing a significant downturn, reaching its lowest Q3 shipment levels since 2012, with a 20 percent year-over-year decline. This slump is primarily attributed to persistent memory shortages, which have driven up DRAM and NAND pricing. These inflated material costs have exacerbated existing supply chain issues, leading to a sharp increase in retail smartphone prices by 20 percent since early 2026.
In response to these challenges, consumer behavior is shifting. Many individuals are now holding onto their current devices for longer periods and increasingly exploring refurbished options. Despite the overall market contraction, industry giants Samsung and Apple have managed to strengthen their market positions. Samsung saw its market share rise to 23 percent, partly due to strong demand for its Galaxy Fold 8. Apple also achieved a record Q3 market share of 22 percent, bolstered by its iPhone 18 Pro launch and sustained momentum from older models.
Conversely, Chinese manufacturers Xiaomi, Oppo, and Vivo have faced considerable difficulties. Xiaomi's market share dropped to 10 percent following a shipment decline exceeding 30 percent. Oppo and Vivo also experienced significant shipment drops, resulting in their market shares falling to 9 percent and 8 percent, respectively. The outlook for the remainder of 2026 remains challenging, with a continued emphasis on premium devices expected.
