Samsung Reclaims Top Smartphone Market Share Amid Memory Crisis

Global smartphone shipments fell 11% in the second quarter of 2026, marking the lowest level for that period since 2013. This decline was driven by a severe DRAM and NAND memory chip shortage, caused by suppliers prioritizing AI data centers over consumer electronics. These constraints pushed some component costs up five-fold, forcing manufacturers to increase prices for entry- and mid-range devices, which dampened consumer demand.

Samsung Electronics reclaimed the global leadership position with a 24% market share, bolstered by Galaxy S26 sales and aggressive promotions in India and the Middle East. Apple followed in second place with a record 20% market share and a 3% rise in shipments, as the company maintained stable pricing for the iPhone 17 series. While these high-margin leaders thrived, mid-tier vendors like Xiaomi, Oppo, and Vivo experienced steep declines. OnePlus reportedly halted all operations in U.S. and European markets due to the rising costs.

In China, shipments fell 4.3%, though Huawei and Apple both achieved growth by maintaining steady pricing. Market analysts warn of continued instability, with shipments of phones priced under $400 expected to drop over 22% this year. Research indicates a meaningful price correction for memory components is unlikely to occur before the second half of 2027.