Global smartphone shipments fall 20% as memory costs rise

Worldwide smartphone shipments declined 20% from a year earlier in the third quarter, reaching the weakest level for that quarter since 2012, Counterpoint Research's preliminary estimates showed on October 12. Manufacturers faced memory chip shortages and higher component costs.

AI infrastructure projects absorbed memory supplies, driving up production costs and leading smartphone makers to increase retail prices and reduce shipments as they favored profitability over volume. Counterpoint senior analyst Shilpi Jain said consumers were keeping phones longer than expected, showing greater interest in refurbished models and favoring higher-value devices.

Samsung led with a 23% share despite a 3% annual decline in shipments. Demand for its Galaxy Z Fold8 series and steady component availability for mid-range phones supported its position. Apple's share reached 22%, its first third-quarter reading above 20%, although its shipments also declined.

Counterpoint said the lack of a base iPhone 18 meant fewer devices entered sales channels during the launch month than with the complete iPhone 17 range a year earlier. OPPO and vivo each recorded shipment declines exceeding 20%. Xiaomi's shipments fell more than 30%, leaving it with a 10% share as it reduced exposure to cheaper phones and some overseas markets to defend margins.