Global Smartphone Shipments Record Worst Q3 Performance in 14 Years
Preliminary estimates from Counterpoint Research released on Monday showed that global smartphone shipments fell by 20 percent in the third quarter compared to the same period last year, marking the lowest level for that quarter since 2012.
This decline is attributed to a sharp rise in memory chip costs and supply shortages, which pressured manufacturers and drove prices upward.
Higher prices for memory components, amid data center infrastructure projects for artificial intelligence absorbing supply, increased production costs. This pushed manufacturers to raise retail prices, cut shipments, and prioritize profitability over sales volume.
Shelby Ma, Senior Analyst at Counterpoint Research, stated, “Consumers are keeping their devices longer than expected, showing greater interest in newer models, and prioritizing higher-value devices.”
Samsung maintained its market leadership with a 23 percent share, supported by demand for the Galaxy Z Fold series and stable component supplies for its mid-range devices. Shipments fell by 3 percent compared to the same quarter last year.
Apple’s market share reached 22 percent, surpassing the 20 percent threshold for the first time in the third quarter, despite a decline in shipments compared to the same period last year.
Counterpoint noted that the absence of a base iPhone 18 model led to lower initial channel shipment volumes during the launch month compared to the full iPhone 17 lineup released last year.
Oppo and Vivo both recorded shipment declines exceeding 20 percent. Xiaomi’s shipments fell by more than 30 percent, reducing its market share to 10 percent, as the company scaled back its focus on low-cost devices and certain overseas markets to protect profit margins.
The firm added that production cuts, portfolio reductions, and a greater focus on premium devices are likely to continue, while budget segments, whose purchasing decisions are sensitive to price changes, face further pressure due to higher device prices and limited component availability.
