Global smartphone sales fell to their lowest level in the second quarter in 13 years, as manufacturers relayed to consumers the rising cost of memory components. Counterpoint Research Said on Monday (July 13) press release.
Total shipments fell 11% year over year in the second quarter to reach the lowest level in the second quarter since 2013, according to the statement.
but, appleThe only major manufacturer that did not raise smartphone prices during the quarter saw its shipments increase by 3%, the statement said. The company also benefited from the continued strength of the iPhone 17 series.
Memory prices continued to rise during the second quarter as memory suppliers prioritized meeting demand from AI data centers over demand from consumer electronics, according to the release.
Demand for smartphones has also been impacted by geopolitical tensions in the Middle East, which have led to increased smartphone price inflation, as well as broader macro pressure, slowing global growth, higher inflation, and record low consumer sentiment, according to the statement.
“The global memory crisis has now overtaken all other factors as the single biggest drag on the smartphone industry,” said Counterpoint Research senior analyst Shelby Jain he said in the release. “What started as an ingredient issue last year is now a full-blown demand issue.”
“Entry- and mid-range devices, which account for the majority of the world’s smartphone volumes and are most exposed to BOM (bill of materials) economics, have become structurally infeasible at previous price points,” Jain said.
Looking ahead, Counterpoint Research expects global smartphone shipments to decline by about 14% for the full year, and that the global memory shortage will continue into 2027.
“A rebound in overall demand is unlikely until memory supply conditions improve significantly,” the company said.
It was reported in January that the expansion of generative AI was beginning to change the economics of consumer electronics in clear and lasting ways. Memory components What once flowed predictably into smartphones, PCs and gaming consoles have increasingly been shifted toward large-scale AI systems under long-term supply agreements.
In March, it was reported that the two trends high on the agenda at the MWC Barcelona 2026 mobile industry event were the shortage of… Memory chips Which the smartphone industry needs in addition to integrating artificial intelligence features into the latest mobile devices.
It was reported in June that Apple Prices raised of its Macs and iPads, and attributed the increases to higher costs of components used in the devices but did not change the price of its iPhones.
