Research: Global Smartphone Market Declines 6% in Early 2026 Due to Memory Crisis Impact

The impact of the memory crisis that began in late 2025 is now evident in the smartphone industry. A report from research firm Counterpoint Research indicates that the smartphone market fell by 6% in the first quarter of 2026 compared to the same quarter the previous year (year-on-year/YoY). In addition to RAM shortages, the sluggish growth in the global mobile market in the early quarter of 2026 is also attributed to weak demand. According to Counterpoint, market performance in several regions remains stable. However, overall market sentiment is still clouded by concerns as mobile vendors adjust prices and production. Several mobile brands are reportedly delaying product launches, resulting in fewer phone releases. The same factors are prompting some vendors to ship earlier to anticipate surges in component prices and increased logistics costs. “This decline in shipments is mainly driven by memory vendors prioritising AI data centres over consumer electronics, thereby squeezing smartphone vendors’ margins and forcing them to pass on raw material costs directly to consumers,” said Shilpi Jain, senior analyst at Counterpoint. Jain also assesses that the supply of those components will remain limited. Additionally, rising electricity prices and logistics costs due to tensions in the Middle East are seen as keeping consumer sentiment towards new phones low and boosting demand for refurbished devices. Furthermore, the analyst notes that entry-level and mid-range smartphones are the devices most affected by supply and demand pressures from the memory crisis. “Although premium device manufacturers like Apple remain fairly resilient in facing this pressure, Chinese brands driven by sales volume are experiencing a more severe decline, particularly in price-sensitive regions. As a result, this crisis contributes to the overall global shipment decline,” Jain explained. In the same report, Counterpoint released a list of the world’s largest or best-selling mobile vendors based on market share. Apple leads the list of the world’s largest vendors in the early part of this year. For the first quarter of 2026, Apple holds a 21% market share thanks to 5% YoY growth. Apple remains a “safe” brand amid the memory crisis due to its focus on premium devices. Its growth in the first quarter of 2026 was driven by strong and sustained demand for the iPhone 17 series.