Global smartphone shipments in the second quarter of this year fell to their lowest level in 13 years, hit by chipflation, or the surge in memory prices.
Global smartphone shipments in the second quarter fell 11% from the same period a year earlier, according to market research firm Counterpoint Research on the 14th. It marked the lowest second-quarter shipments since 2013. Counterpoint Research also forecast that annual shipments this year would fall 14% from last year.
The decline came as surging memory costs for components used in smartphones sharply eroded product profitability. In particular, budget smartphones, in which memory accounts for a larger share of costs than in premium models, were more heavily affected by chipflation. As a result, Samsung Electronics (005930.KS) and Apple, which lead with premium phones, fared relatively well, while Chinese makers such as Xiaomi, Oppo and Vivo, whose main products are budget phones, recorded double-digit declines in shipments in a single year.
The market is also reshaping around premium phones. Samsung Electronics' market share in the second quarter of this year rose to 24%, up 4 percentage points from 20% in the same period last year, while Apple's share rose 3 percentage points to 20% over the same period. By contrast, Xiaomi (12%), Oppo (11%) and Vivo (8%) saw their shares decline slightly compared with a year earlier.
Counterpoint Research said of Samsung Electronics that it "recorded the strongest growth among the top five brands," adding that it "maintained relatively solid performance in the Indian and Middle Eastern markets, driven by expanded product supply, minimal price increases and the popularity of its flagship products." It further noted that "increased production of the Galaxy S26 series drove the overall shipment increase, and the Ultra model showed standout performance, driven by strong demand for its privacy display and artificial intelligence (AI) features."
Counterpoint Research said, "We expect the global memory shortage to continue through next year," adding, "As manufacturers cut low-profitability models, the premiumization of the smartphone market is expected to remain relatively solid for the rest of this year."
