Global Memory Chip Crisis Drives Smartphone Sales to 13-Year Low in Q2 2026
The global memory chip shortage has caused an 11% drop in smartphone sales in the second quarter of 2026, reaching the lowest level in 13 years, according to research firm Counterpoint. Despite the overall decline, Samsung, Apple, and Google reported growth in their smartphone sales during this period. Counterpoint analyst Shilpi Jain stated that the memory crisis has become the most significant challenge for the smartphone industry, particularly impacting entry-level and mid-range devices that dominate the global market. Manufacturers have responded by raising prices, extending the lifecycle of older models, delaying new launches, and slowing production starts. Additionally, geopolitical tensions in the Middle East and rising oil prices have further increased smartphone costs.
High-bandwidth memory (HBM) chips, essential for AI data centers, are in high demand and produced mainly by Micron (USA), Samsung, and SK Hynix (South Korea), all struggling to meet demand, leading to global price increases. Unlike AI chips such as Nvidia’s, memory chips are critical components in consumer electronics like computers, smartphones, and gaming consoles, pushing up production costs. Companies including Apple and Microsoft have recently raised prices on devices like Macs, iPads, and Xbox consoles.
Among smartphone manufacturers, Chinese companies OPPO, Xiaomi, and vivo, which focus on lower-priced devices, have been hit hardest by the chip shortage. Each experienced double-digit declines in units sold in Q2, with Xiaomi’s market share dropping from 14% to 12%, OPPO’s falling by 1% to 11%, and vivo’s also declining to 8%. Counterpoint noted supply challenges and price hikes pushed some vivo models out of their previous price categories, while OPPO faced weak demand in key markets.
Samsung regained the top spot with a 24% market share, supported by stable sales in India and the Middle East, better product availability, fewer price increases, and aggressive marketing. Apple returned to second place with a 20% share, up 3% year-over-year, and was the only major manufacturer to avoid raising smartphone prices in Q2. The iPhone 17 remained the world’s best-selling model, though Apple’s sales in China declined. Outside the top five, Huawei and Google saw significant growth of 6% and 16%, respectively.
Counterpoint forecasts a 14% annual decline in smartphone sales for 2026, with the memory chip crisis expected to persist into 2027. Manufacturers are likely to prioritize value over volume, reduce low-margin devices, and promote refurbished and older models to retain customers. A recovery in demand is unlikely until there is a significant improvement in memory chip supply.
