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The global smartphone market has come under severe pressure from soaring memory chip prices and supply shortages, with worldwide shipments plunging 20 per cent year-on-year in the third quarter of this year, according to research firm Counterpoint Research.
Shipments from July to September fell to their lowest level for any third quarter in 14 years, the report said. Higher handset prices have weakened consumer purchasing power, while the market for affordable smartphones has shrunk, contributing to the broader downturn.
Samsung and Apple have bucked the trend, strengthening their positions as demand for premium smartphones remains resilient despite the market contraction.
South Korea’s Samsung led the global market with a 23 per cent share, up from 19 per cent in the same period last year. Strong demand for its newly launched Galaxy Z Fold8, Fold8 Ultra and Flip8 series helped the company expand its market presence.
US technology giant Apple ranked second with a 22 per cent market share, its highest ever for a third quarter, according to Counterpoint. The performance highlights the relative strength of premium devices as consumers face rising prices across the market.
In contrast, leading Chinese smartphone makers have come under growing pressure as higher memory chip costs have pushed up production expenses, particularly for mid-range and budget handsets.
Xiaomi’s market share fell to 10 per cent from 14 per cent a year earlier. Oppo and Vivo ranked fourth and fifth, with market shares of 9 per cent and 8 per cent, respectively.
The average retail price of smartphones worldwide has risen by around 20 per cent since the beginning of the year, further squeezing demand for lower-priced devices.
Technology analysts expect market conditions to remain challenging through the rest of the year as manufacturers grapple with rising component costs and constrained supplies.
Against this backdrop, smartphone makers are increasingly prioritising profitability over shipment volumes, focusing more on premium and flagship devices to protect their margins.
The shift could intensify pressure on budget-conscious consumers and manufacturers that depend heavily on affordable handsets, potentially reshaping competition in the global smartphone market.
