Smartphone market sees sharp decline

The global smartphone market saw a 22% drop in the third quarter of 2026 compared to the same period last year, the worst performance for the sector in 14 years, according to data from IDC Research. This follows a 4% decline in the first quarter of the year, signaling a deepening crisis in the industry.

Memory costs drive market challenges

The market has been hit hard by a memory crisis, with memory costs rising by about 350% since last year and continuing to climb, according to Nabila Popal, a research director at IDC. These rising costs have pushed global smartphone shipments to a historically low level, just above 235 million units, down from more than 300 million units sold in previous years.

Samsung and Apple maintain strong positions

Market leaders Samsung and Apple are faring better than other manufacturers, supported by the launch of new foldable models like the Galaxy Z Fold 8 and the iPhone 18 Pro. Both companies hold 22% of the market share, higher than last year, despite a 5.8% and 4% drop in their respective shipments.

Chinese manufacturers struggle with declines

Chinese manufacturers such as Xiaomi, Oppo, and vivo have all experienced a roughly 30% drop in shipments. Francisco Jeronimo, vice president of the device division at IDC, attributes this to their focus on the entry-level market, where they face challenges in maintaining profit margins while keeping up with sales volume amid declining demand.

Huawei benefits from domestic support

Huawei is performing relatively better in its domestic market, aided by its proprietary software ecosystem and local industrial partnerships that help capture patriotic demand and partially offset rising memory costs. However, its international market share has declined due to U.S. sanctions, limiting its global growth potential.

Market recovery expected to be delayed

IDC analysts predict the smartphone market will not recover soon, as foundries begin reallocation of chip production lines for artificial intelligence. The balance between supply and demand for memory is not expected to return until the second half of 2027, prolonging the industry's downturn.