Smartphone Shipments Hit Their Weakest Q2 Since 2013 As Memory Costs Bite

The global smartphone market has entered a much harsher phase. New data from Counterpoint Research says smartphone shipments fell 11 percent year-on-year in Q2 2026, reaching the lowest second-quarter level since 2013 as the memory chip crisis deepened.

This is not just another soft quarter for phone makers. DRAM and NAND shortages are pushing up bill-of-materials costs, forcing brands to make harder decisions about pricing, inventory and which models deserve limited component supply. In a market where consumers are already keeping phones for longer, higher component costs can quickly turn into weaker demand.

Counterpoint’s preliminary read also shows a split market. Apple reportedly grew shipments by about 3 percent year-on-year and reached a record 20 percent Q2 share, while the broader market contracted. Samsung and Apple are therefore better positioned than many lower-margin Android brands because they can defend premium pricing and absorb supply pressure more effectively.

TechBooky has covered the other side of this same chip story through Samsung’s AI memory-chip boom and the wider argument that AI spending is turning data centres and memory chips into an inflation story. Smartphone makers are now feeling that pressure directly.

Memory used to be one of several major parts inside a smartphone cost structure. In 2026, it has become one of the most sensitive components because AI infrastructure, data centres and premium devices are all competing for supply. When memory prices rise, budget and midrange phones suffer first.

That matters for markets like Africa, India and Southeast Asia, where affordability still drives upgrade cycles. If manufacturers raise prices or cut specifications to protect margins, consumers may delay purchases. If brands keep prices steady, they may accept thinner margins or reduce shipments.

Apple’s reported Q2 resilience shows why premium positioning matters in a supply crunch. iPhone buyers are more likely to absorb stable or slightly higher pricing, and Apple’s ecosystem makes upgrades feel less interchangeable than many Android alternatives.

That does not mean Apple is immune. It still depends on the same memory supply chain. But compared with smaller vendors that compete heavily on price, Apple has more room to manage component inflation without immediately losing its core audience.

Consumers may see fewer aggressive discounts, weaker specifications at the same price point or longer waits for some models if the memory crunch continues. The biggest squeeze will likely be in the sub-premium segment, where every dollar of component cost matters.

For the smartphone industry, the Q2 slump is a warning that the AI boom has side effects beyond servers and data centres. When memory becomes scarce, the cost can show up in the phones people buy every day.