Smartphone shipments dropped by 11% in Q2 2026, reaching their lowest level since 2013. According to Counterpoint, this decline is largely due to rising prices of DRAM and NAND chips, as manufacturers shift focus to support the booming AI market. As a result, fewer components are available for consumer devices, negatively impacting smartphone sales.
Apple and Samsung Lead Amid Declining Shipments
Despite the overall decline, Apple and Samsung have managed to sustain their sales. Apple experienced a 3% increase in shipments last quarter, maintaining stable prices for its current iPhone models. In contrast, other manufacturers like Oppo, Vivo, and Xiaomi saw declines in their sales.
Samsung has regained its position as the largest global smartphone OEM, accounting for 24% of shipments. Its success is attributed to the strong performance of the Galaxy S26 series, especially the Ultra variant, which has seen increased sales despite raised prices.
Impact of Rising Memory Costs on Budget Devices
Higher memory costs are particularly impacting smartphones priced at $500 or less, where memory can now account for half of the total manufacturing cost. This has led to significant price increases for budget devices, making them less attractive to consumers. As a result, budget-conscious buyers are opting to keep their current devices longer, benefiting from extended software support.
- Apple: 20% of global smartphone shipments
- Samsung: 24% of global smartphone shipments
- Oppo, Vivo, Xiaomi: all saw declines in shipments
- Budget devices: memory costs account for 50% of manufacturing
Future Trends in Smartphone Manufacturing
Looking ahead, analysts predict that the component shortage will persist into next year, influencing manufacturers to focus on higher-end models. This shift may lead to a reduction in budget smartphones with low margins, encouraging consumers to view smartphones more as appliances that are purchased less frequently.
As manufacturers adapt to these changes, the competition will intensify, especially in emerging markets where aggressive promotions are key to driving sales. Google’s Pixel phones, although not in the top five, have seen a 16% year-over-year increase in shipments thanks to strong demand for the Pixel 10.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Ars Technica. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
