Overview
- Counterpoint Research reports global smartphone shipments fell about 11% year‑on‑year in Q2 2026, the weakest second quarter since 2013.
- The shortfall stems from DRAM and NAND capacity being redirected toward high‑bandwidth memory used in AI data centers, which has driven memory prices roughly four times higher since September 2025.
- Manufacturers passed higher component costs to buyers so that average handset prices rose about 15% by the end of Q2 2026 and India launch prices climbed about 69% for new models.
- The squeeze has reshaped competition with Samsung and Apple gaining share while Google’s Pixel and Nothing posted strong growth and budget‑focused Chinese brands saw steep volume losses, especially in the sub‑₹15,000 segment which fell about 45% year‑on‑year.
- Analysts expect pressure to persist into 2027, prompting OEMs to trim low‑margin models, push premium lines and financing, and forcing many consumers to delay upgrades or turn to used phones and buy‑now‑pay‑later plans.