According to the authors of the report, the market decline was close to their expectations, as relentless increases in resource prices intensified.
A report published by Counterpoint Research, which is a worldwide market research firm specialising in products across the technology ecosystem, has found that global smartphone shipments declined by 20pc year-on-year in Q3 of 2026.
This is the lowest Q3 figure in 14 years, according to preliminary estimates from Counterpoint Research’s Market Monitor service.
The platform noted that the figures do not come as a surprise, as ‘relentless increases in Dram (dynamic random-access memory) and Nand (Not And) prices intensified memory cost shock in Q3”.
Counterpoint’s research suggests that the sharp inflation of bill of material (BOM) costs and worsening supply shortages have greatly disrupted the original equipment manufacturer (OEM) shipments, globally. In turn, consumers are also being met with higher component costs, ramping up the cost of smartphones in shops and increasing the market average selling price (ASP).
“Q3 was the second successive quarter to take the full brunt of the memory crisis. The extreme memory shortage is pushing the smartphone market into a more selective phase, reshaping OEM strategies and even consumer behaviour,” explained Shilpi Jain, a senior analyst at Counterpoint.
She added, “Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritising higher-value devices, while OEMs are adjusting portfolios, pricing and market strategies to protect profitability.
“This is creating greater pressure across the mass market, while premium demand remains comparatively resilient, widening the gap between premium and price-sensitive segments.”
Samsung was found to be in the top position still for the Q3 period, as shipments declined 3pc year-on-year, while its market share increased to 23pc, the largest among the major OEMs.
Comparably, Apple’s market share crossed 20pc, a first for any of its Q3 showings and reached 22pc, despite a year-on-year decline in shipments.
Xiaomi’s decline was steep, at more than 30pc year-on-year for Q3 2026 and the market share fell to just 10pc. Counterpoint suggested that this was a result of reduced exposure to lower price segments, non-core overseas markets, raising ASPs and tightening shipment plans.
The report stated, “The outlook for the remainder of 2026 remains challenging, with OEMs increasingly prioritising profitability over shipment volumes amid elevated component costs and weaker affordability.
“Production cuts, tighter portfolios and greater focus on premium devices are likely to continue, while price-sensitive segments face further pressure from higher device prices and limited availability of components. A meaningful recovery in overall volumes is unlikely until component costs and supply conditions improve.”
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.