Memory shortage pushes smartphone shipments to historic lows, Apple and Samsung benefit
A memory chip shortage and rising costs have caused smartphone shipments to drop to record lows, but Samsung and Apple have maintained or grown their market share.
Memory Deficit and Market Trends
According to Counterpoint Research, global smartphone shipments in Q2 2026 fell to historic lows due to a memory chip shortage and rising prices. Samsung remains the largest OEM with a 24% market share, followed by Apple at 20%. However, Omdia reports a smaller 4% decline, with Samsung at 22% and Apple at 20%.
Samsung and Apple's Strengths
Samsung's Galaxy S26 series, especially the Ultra variant, sold better than last year's models despite higher prices. The company is also strong in markets like India and the Middle East, where lower prices and aggressive promotions boost sales. Apple, meanwhile, maintained steady demand for its flagship devices.
Budget Segment Struggles
Budget-conscious consumers are holding onto their current phones longer, taking advantage of extended support. Samsung and Google now offer seven years of updates, matching Apple's support window. This encourages users to treat smartphones as long-term appliances, replacing them less frequently.
Google Pixel Growth
Although Google Pixel phones aren't in the top five, shipments grew 16% year-over-year in Q2, driven by strong Pixel 10 sales.
Future Outlook
Analysts expect the component shortage to continue at least into next year. Even if AI becomes a major trend, manufacturers will likely eliminate low-margin budget models and raise prices on remaining ones, extending replacement cycles.
