Samsung reclaims global lead as smartphone shipments plunge 11% amid memory‑chip crunch

Samsung market share Apple record share memory chip shortage smartphone shipment decline budget phone impact

Global smartphone shipments fell 11% year‑on‑year in the second quarter of 2026, the lowest level since 2013. The decline is attributed to a severe shortage of DRAM and NAND memory chips, as manufacturers divert production to AI data‑center demand, driving component prices up and forcing higher retail prices, especially for entry‑level and mid‑range devices.

Samsung Electronics regained the #1 spot with a 24% share, propelled by strong sales of the Galaxy S26 Ultra, stable supply chains and modest price adjustments in key markets such as India and the Middle East. Apple achieved a record 20% share, with iPhone 17 shipments up 3% year‑on‑year and without price hikes, reinforcing its position as the only major OEM that avoided raising smartphone prices.

Chinese manufacturers Xiaomi (≈12% share), OPPO (≈11%) and vivo (≈8%) posted double‑digit shipment drops as higher memory costs squeezed margins. In India, smartphone shipments slid 10% YoY, with the mass‑market segment (sub‑₹15,000) down 45% as consumers postponed upgrades. The same memory‑chip shortage is also curbing PC shipments worldwide.

Overall, the memory‑chip crisis is reshaping product strategies: some OEMs are extending older models, offering promotions, or shifting focus to 4G devices for price‑sensitive buyers, while premium segments remain comparatively resilient.