Global smartphone shipments fall to 13-year second-quarter low as chip shortages squeeze demand

Monday 13 July 2026 - 14:45

By: Sahili Aya

Global smartphone shipments fall to 13-year second-quarter low as chip shortages squeeze demand

The global smartphone industry recorded its weakest second-quarter performance in more than a decade as persistent shortages of memory chips continued to disrupt production, increase device prices and weigh on consumer demand.

According to preliminary estimates from Counterpoint Research, worldwide smartphone shipments declined by 11% year over year during the second quarter, marking the lowest volume for the April-to-June period since 2013.

Semiconductor constraints continue to pressure the market

The prolonged shortage of memory chips has remained one of the industry's biggest challenges, limiting production capacity while raising manufacturing costs for smartphone makers.

Higher component prices have translated into more expensive devices, prompting many consumers to delay upgrades or extend the lifespan of existing smartphones.

The slowdown reflects broader caution in consumer spending, particularly in markets where inflation and economic uncertainty continue to influence purchasing decisions.

Apple expands market share despite industry downturn

While the overall market contracted, Apple delivered a stronger-than-expected performance.

The company increased shipments by approximately 3% during the quarter, raising its global smartphone market share to a record 20%, according to Counterpoint Research.

Industry analysts attributed the gains to sustained demand for Apple's premium iPhone portfolio and the company's decision to keep pricing stable despite higher component costs.

However, market observers believe pricing adjustments could become more likely if supply-chain pressures persist.

Premium segment shows greater resilience

The latest figures highlight a growing divide within the smartphone industry.

Premium devices have continued to attract buyers despite weaker overall demand, while mid-range and entry-level segments have experienced greater pressure from rising prices and cautious consumer spending.

Manufacturers are increasingly focusing on high-value models that offer stronger profit margins in a challenging market environment.

Industry outlook remains uncertain

Although semiconductor availability has improved in some areas of the technology sector, memory chip supply remains a key constraint for smartphone manufacturers.

Analysts expect the pace of market recovery to depend on the normalisation of component supplies, consumer confidence and pricing strategies over the coming quarters.

For now, the latest shipment figures illustrate the difficult environment facing the global smartphone industry, even as leading brands such as Apple continue to outperform the broader market through strong demand for premium products.