Smartphone shipments fall 20% to a 14-year low as the memory shortage bites

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Global smartphone shipments fell 20 percent year on year in the third quarter of 2026, according to Counterpoint Research. 9to5Google's Ben Schoon reports that this is the lowest level in 14 years, last seen around the launch of the Galaxy S3. The main cause is the shortage of memory chips that has been hitting the whole tech industry, which some have nicknamed RAMageddon

Samsung stays at the top with 23 percent of the market, up from 19 percent, even though its shipments fell 3 percent. The article credits the Galaxy Z Fold 8 with helping Samsung hold up better than most. Apple has 22 percent, up from 18 percent, despite a 22 percent fall in shipments, which is put down to there being no base iPhone 18 this year

Other brands were hit harder. Oppo and Vivo each fell about 20 percent, and Xiaomi had the steepest drop at 30 percent. Brands that rely on affordable phones seem to be struggling most, which makes sense, because memory costs eat a bigger share of a cheap phone's price

The article also points to an earlier report claiming that Samsung makes no profit on Galaxy phones at current production costs. That claim has not been confirmed, but it shows the kind of pressure manufacturers are under. These figures come from a single analyst firm, so they are estimates rather than official numbers

The silver lining for consumers is that phones last longer than ever, and many people can comfortably keep theirs for another year. Once new memory factories come online and AI demand settles, prices should ease. For now, though, the phone market is in an unusual slump

Has the memory shortage changed your plans to upgrade? And which brands do you think will come out of this strongest?

Smartphone shipments dropped by 20%, lowest point in 14 years amid memory crisis9to5google.com