Global smartphone shipments fall 20% as memory shortages hit market

Global smartphone shipments fell 20% in the third quarter compared with the same period a year earlier, according to preliminary figures from Counterpoint.

The decline brought shipments to their lowest level since 2012.

A shortage of memory chips is driving up costs because demand from companies building AI infrastructure has outpaced supply.

Samsung and Apple saw declines of only a few percent each, while Xiaomi, Oppo and Vivo shipments fell by 20% to 30%.

Samsung and Apple now hold 45% of the market, up from 37% a year earlier, while the three Chinese brands’ combined share fell from 35% to 27%.

Higher memory costs are leading phone makers to raise prices, cut production and keep older models on sale longer, with cheaper phones most affected and demand for premium models holding up better.

A strong recovery is unlikely until memory costs and supply conditions improve, Counterpoint says.