Global smartphone shipments suffer worst third quarter in 14 years

what happened

Global smartphone shipments dropped 20% from a year earlier in the third quarter, reaching their lowest level for that period since 2012, Reuters reported on Monday, citing preliminary Counterpoint Research estimates. Manufacturers faced supply constraints and sharply higher memory-chip prices, which forced them to raise retail prices and reduce deliveries.

AI infrastructure projects have absorbed available memory supplies, lifting production expenses. Smartphone makers have consequently favored profitability over shipment volumes. “Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritizing higher-value devices,” Counterpoint senior analyst Shilpi Jain said.

Samsung remained the market leader with a 23% share, supported by demand for the Galaxy Z Fold8 series and steady component availability for its mid-range phones. Its shipments declined 3% year on year. Apple’s share reached 22%, moving above 20% in a third quarter for the first time even as its shipments fell annually. Counterpoint said the lack of a standard iPhone 18 produced a smaller initial retail allocation in the launch month than the complete iPhone 17 range had received a year earlier. OPPO and vivo shipments fell by more than 20%, while Xiaomi suffered a decline exceeding 30%. Xiaomi’s share decreased to 10% after it reduced exposure to lower-priced phones and certain overseas markets to protect margins.

why it matters

Memory shortages are squeezing both smartphone volumes and manufacturers’ costs. The industry response—higher prices, lower shipments and a focus on margins—puts particular pressure on demand for lower-priced devices.

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