Global smartphone shipments in second quarter hit lowest in 13 years on memory chip crunch

• Memory chip prices rose as suppliers prioritized AI data center customers over consumer electronics, forcing manufacturers to raise prices especially on entry- and mid-range devices
• Samsung reclaimed the top market position with 24% share, while Xiaomi, Oppo, and Vivo experienced the steepest declines due to greater exposure to lower-priced device segments
• Counterpoint Research forecasts global smartphone shipments will decline approximately 14% for the full year, with the memory shortage likely continuing into 2027

Summary: Global Smartphone Shipments Hit 13-Year Low Amid Memory Chip Shortage

Key Figures:

• Global smartphone shipments declined 11% in Q2 2025, reaching the lowest level for the quarter since 2013
• Annual shipments expected to fall 14% for the full year
• Memory chip shortage projected to continue through 2027

Market Performance by Company:

• Apple: Defied the downturn with 3% shipment growth, gaining market share
• Samsung: Reclaimed top market position with 24% share
• Xiaomi, Oppo, Vivo: Experienced the steepest declines among top five manufacturers due to heavy exposure to entry-level and mid-range segments

Core Issue:

A prolonged memory chip shortage is driving the downturn. Suppliers are prioritizing AI data center customers over consumer electronics manufacturers, causing memory prices to surge. This has forced smartphone makers to implement price increases, particularly affecting budget and mid-tier devices, which has dampened consumer demand.

Market Implications:

• Further price increases expected in coming months as component costs remain elevated
• Entry and mid-range smartphone segments most vulnerable to margin pressure and demand weakness
• Premium segment showing resilience, as evidenced by Apple's growth
• Extended recovery timeline with shortage expected to persist into 2027
• Companies with stronger exposure to premium segments better positioned to weather the downturn

The data underscores a significant supply chain disruption reshaping the smartphone industry, with AI infrastructure demand creating lasting headwinds for consumer electronics manufacturers through at least 2027.