Key facts
- Global smartphone shipments fell 20% year-on-year in Q3, the lowest third-quarter level since 2012.
- Rising memory chip costs and supply shortages are driving up production expenses.
- Samsung led the market with a 23% share, despite a 3% decline in shipments.
- Apple captured 22% market share, its first time exceeding 20% in a third quarter.
- Xiaomi's market share dropped to 10% after a more than 30% decline in shipments.
Global smartphone shipments experienced their steepest third-quarter decline in 14 years, falling 20% year-on-year to the lowest level since 2012, according to preliminary estimates from Counterpoint Research. The downturn was attributed to soaring memory chip costs and supply shortages, which have increased production expenses and led manufacturers to raise retail prices and cut shipment volumes.
Consumers are increasingly holding onto their devices for longer periods, considering refurbished options, and prioritizing higher-value devices, noted Shilpi Jain, a senior analyst at Counterpoint.
Samsung maintained its leading market position with a 23% share, despite a 3% year-on-year decrease in shipments, supported by demand for its Galaxy Z Fold8 series and stable component supplies for its mid-range devices. Apple secured the second spot with 22% market share, marking the first time it surpassed 20% in a third quarter. This performance was influenced by the absence of a base iPhone 18 model, resulting in a smaller launch-month channel fill compared to the previous year's iPhone 17 lineup.
Other major players also saw significant declines. OPPO and vivo recorded shipment drops exceeding 20%. Xiaomi experienced a more than 30% fall in shipments, consequently reducing its market share to 10% as the company focused on protecting margins by cutting exposure to lower-priced devices and certain overseas markets.