Global smartphone sales have fallen to their lowest point in 14 years after a 20 per cent drop over the last year.
Preliminary data shows that shipments fell by a fifth between the third quarter of 2025 and the same period this year.
The latest figures come amid a prolonged period of decline for the smartphone market, with sales reaching their peak in 2016.
Despite the arrival of foldable phones and 5G connectivity, the last decade has mostly seen incremental upgrades among leading suppliers, leaving consumers less inclined to upgrade their devices every year.
But the severity of the most recent decline is the result of a memory component crisis compounded by surging chip demand driven by artificial intelligence.
The higher costs have been passed on to consumers, with retail prices up by 20 per cent in 2026.
"The extreme memory shortage is pushing the smartphone market into a more selective phase, reshaping OEM (original equipment manufacturer) strategies and even consumer behaviour," said Shilpi Jain, a senior analyst at Counterpoint Research.
"Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritising higher-value devices."
Samsung continues to lead Apple as the world's leading smartphone maker with a 23 per cent market share in the third quarter of this year.
Along with Chinese manufacturers Xiaomi, Oppo and Vivo, the tech giants make up nearly three quarters of the global market.
Preliminary data shows that shipments fell by a fifth between the third quarter of 2025 and the same period this year.
The latest figures come amid a prolonged period of decline for the smartphone market, with sales reaching their peak in 2016.
Despite the arrival of foldable phones and 5G connectivity, the last decade has mostly seen incremental upgrades among leading suppliers, leaving consumers less inclined to upgrade their devices every year.
But the severity of the most recent decline is the result of a memory component crisis compounded by surging chip demand driven by artificial intelligence.
The higher costs have been passed on to consumers, with retail prices up by 20 per cent in 2026.
"The extreme memory shortage is pushing the smartphone market into a more selective phase, reshaping OEM (original equipment manufacturer) strategies and even consumer behaviour," said Shilpi Jain, a senior analyst at Counterpoint Research.
"Consumers are holding on to their devices longer than estimated, increasingly considering refurbished devices and prioritising higher-value devices."
Samsung continues to lead Apple as the world's leading smartphone maker with a 23 per cent market share in the third quarter of this year.
Along with Chinese manufacturers Xiaomi, Oppo and Vivo, the tech giants make up nearly three quarters of the global market.
