Global smartphone shipments hit 13-year low in Q2 amid memory chip crunch

• Memory chip prices climbed 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 saw the steepest declines due to greater exposure to budget and mid-tier segments
• The memory shortage is expected to continue into 2027, with global smartphone shipments forecast to decline approximately 14% for the full year 2025

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

Key Findings:

Global smartphone shipments declined 11% in Q2 2025, reaching the lowest second-quarter level since 2013, according to Counterpoint Research. The sharp downturn was driven by a prolonged memory chip shortage that increased handset prices and suppressed consumer demand.

Market Performance:

• Apple defied the market trend with a 3% increase in shipments, gaining market share despite broader industry weakness
• Samsung reclaimed the top position with 24% market share
• Xiaomi, Oppo, and Vivo experienced the steepest declines among top-five manufacturers due to heavy exposure to entry- and mid-range device segments

Core Issue:

Memory chip suppliers have prioritized AI data center customers over consumer electronics manufacturers, causing component prices to surge. This forced smartphone makers to implement price increases, particularly affecting budget and mid-tier devices where margins are tighter.

Market Outlook:

Counterpoint Research projects a 14% decline in global smartphone shipments for the full year 2025. The firm warns that memory chip shortages will likely persist into 2027, suggesting continued pressure on the industry. Additional price increases are expected in coming months as manufacturers struggle with elevated component costs.

Investment Implications:

The memory shortage presents a bifurcated market: premium manufacturers like Apple show resilience, while companies focused on price-sensitive segments face significant headwinds. The prolonged shortage indicates sustained industry challenges, potentially reshaping competitive dynamics and profit margins across the smartphone sector through 2027.