Global smartphone shipments fall on memory crisis
Analysis based on 37 articles · First reported Jul 13, 2026 · Last updated Aug 21, 2026
The memory shortage is driving up smartphone prices and reducing shipment volumes, pressuring margins for budget-focused vendors while benefiting premium players like Apple and Samsung. The market is undergoing a structural repricing, with higher ASPs partially offsetting volume declines, but sustained cost pressures could dampen consumer demand and industry revenue growth.
In Q2 2026, global smartphone shipments fell sharply due to a severe memory chip shortage, with DRAM and NAND prices soaring as suppliers prioritized AI data center demand. Counterpoint Research reported an 11% year-on-year decline, while Omdia estimated a 6% drop to 272 million units, the lowest Q2 since 2013. The crisis forced OEMs to raise prices, especially in entry-level and mid-range segments, dampening demand. Samsung reclaimed the top spot with 22-24% market share, benefiting from its vertically integrated memory business, while Apple posted record Q2 shipments and a 20% share, avoiding price hikes. Xiaomi, Oppo, and Vivo suffered significant declines due to exposure to budget segments. Geopolitical tensions in the Middle East added to supply chain disruptions. Omdia forecast a structural repricing of the market, with average selling prices rising 21% to $565 in 2026, and projected a 14% full-year shipment decline for 2026, with the memory shortage expected to persist into 2027.
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