Mobile Phone Sales in Freefall in 2026, Only These Brands Still Selling

The mobile phone industry slumped further in the second quarter of 2026, revealing mounting pressure from the global memory chip crisis. The crisis, which began in late 2025, has triggered a staggering rise in component prices, forcing manufacturers to adjust pricing or the specifications offered to consumers. The global memory chip crisis was caused by the AI ‘explosion’, which triggered a surge in demand for chips for AI data centre infrastructure, consequently impacting the production of conventional chips for consumer electronic devices, including mobile phones. Research firm Counterpoint recorded an 11% year-on-year decline in global handset shipments during Q2 2026. The drop marks the most sluggish Q2 growth since 2013. Counterpoint Senior Analyst Shilpi Jain stated that the global memory chip crisis has now surpassed other factors as the biggest obstacle for the mobile phone industry. A problem that was initially only component-related last year has now evolved into a serious demand issue. ‘Entry-level and mid-range phones, which account for the majority of the world’s phone volume and are most affected by the bill of materials cost structure, are becoming unviable [with the price increases occurring],’ Jain said. According to Counterpoint’s findings, mobile phone manufacturers are responding to the phenomenon of rising component prices due to the memory chip crisis in various ways. Some are raising prices and accepting pressure on profit margins, while others are extending the life cycles of older generation models and using promotions to retain price-conscious buyers. ‘Additionally, some are simply delaying launches and reducing production. Besides the memory chip shortage, geopolitical tensions in the Middle East have also driven up oil and shipping costs, further increasing phone prices,’ Jain explained. ‘This condition coincides with broader macroeconomic pressures, a global growth slowdown, higher inflation, and consumer sentiment at a historic low, the impact of which is felt most heavily by highly price-sensitive buyers,’ she said. Although the global mobile phone industry experienced a sharp decline, Samsung managed to maintain its position at the top of the ‘Top 5’ rankings with the largest market share. In fact, Samsung’s market share increased from 20% to 24% year-on-year in Q2 2026. Additionally, Apple, in second place, also recorded market share growth in Q2 2026, from 17% to 20%. Meanwhile, the veteran Chinese manufacturers occupying the third to fifth positions collectively recorded declines. Xiaomi, in third place, experienced a reduction in shipments, with a market share of 12%, down from 14%. Oppo also experienced a decline, from 12% to 11%. Lastly, Vivo also saw its market share weaken from 9% to 8%. ‘Xiaomi, Oppo, and Vivo each recorded double-digit year-on-year shipment declines in Q2 2026 due to increased market volatility triggered by rising memory costs,’ the Counterpoint report stated.