Global smartphone shipments plunge 20% in Q3, hit by memory chip shortage
Smartphone shipments worldwide fell 20% year-over-year to their lowest third-quarter level since 2012, as soaring memory-chip costs and supply gaps squeezed manufacturers.
Preliminary data show global smartphone shipments dropped 20% from a year earlier, marking the weakest third-quarter performance since 2012. The decline stems from sharply higher memory-chip prices, as AI-related projects absorb much of the supply, raising production costs and prompting manufacturers to increase retail prices and cut output. Shilpi Jain of Counterpoint Research noted that consumers are extending device lifespans, opting for refurbished phones and higher-value models.
Samsung retained its top spot with a 23% market share, buoyed by strong demand for the Galaxy Z Fold8 and steady component supplies for its mid-range lineup. Apple’s share rose to 22% despite a shipment dip, partly because the iPhone 18 base model was absent, reducing launch-month volume. OPPO and vivo each recorded shipment declines exceeding 20%, while Xiaomi’s shipments fell more than 30%, shrinking its share to 10% as it withdrew from lower-priced segments and some overseas markets to protect margins.
Why it matters
The slump highlights how memory-chip shortages and AI demand are reshaping the global smartphone market and consumer buying habits.
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