Overview
- New industry reports published Monday showed a sharp second‑quarter downturn with Counterpoint estimating an 11% year‑on‑year drop in global shipments driven by rising component costs.
- Analysts say DRAM and NAND suppliers prioritized AI data‑center customers, cutting available memory for phones and forcing manufacturers to raise retail prices for entry and mid‑range models.
- Samsung reclaimed the top seller position with roughly a 24% sell‑in share helped by Galaxy S26 demand and fewer price rises in some markets while Apple grew shipments about 3% and reached a record ~20% share by leaning on premium iPhone demand.
- Budget‑focused Chinese brands including Xiaomi, Oppo and Vivo suffered the biggest declines as higher memory costs made low‑margin phones unprofitable and prompted makers to cut cheap SKUs, simplify lineups and push refurbished or older models.
- Forecasts diverge but remain weak: Counterpoint now expects about a 14% full‑year fall and sees supply pressure lasting into 2027, while other firms report smaller near‑term drops, leaving the timing of relief uncertain and consumer prices likely to stay elevated.