Overview
- Counterpoint’s Monday estimates show global smartphone sell‑in volumes fell sharply in Q2 2026, with an 11% year‑over‑year decline that matched the weakest April–June quarter since 2013 while Omdia reported a smaller about 4% drop.
- DRAM and NAND suppliers have given priority to AI data‑center customers, which lifted memory prices and raised handset bill‑of‑materials costs for phone makers worldwide.
- Manufacturers have reacted by raising retail prices on many models, trimming low‑margin entry and mid‑range lines, delaying or shrinking new launches, and relying more on older or refurbished devices to preserve margins.
- Market leaders with premium portfolios and vertical scale benefited: Samsung reclaimed the top spot with roughly a 24% share helped by Galaxy S26 availability and promotions, and Apple grew shipments about 3% to a record 20% share after avoiding Q2 price hikes.
- Analysts warn the squeeze will last: Counterpoint expects about a 14% drop for full‑year 2026 and sees the memory shortage persisting into 2027, a dynamic likely to further reduce affordable choices and shape vendor strategies through the holiday season.