The global smartphone market has gone through one of its weakest periods in recent years, with shipments decreasing by 20 percent in the third quarter of 2026 compared to the same period last year. According to data published by Counterpoint Research, smartphone shipments in the July-September period fell to the lowest third quarter level in the last 14 years. High prices and supply problems in memory components increased manufacturers’ costs and negatively affected the sales of affordable models in particular. Despite these conditions, Samsung and Apple were the two manufacturers that managed to increase their market share. While the total market share of both companies reached 45 percent, Xiaomi, Oppo and vivo experienced share losses in the same period of the year.
Samsung maintained its leadership in the global smartphone market with a 23 percent market share in the third quarter. The South Korean manufacturer’s market share, which was 19 percent in the same period of 2025, increased by four points within a year. Apple showed a similar increase and increased its share from 18 percent last year to 22 percent. Thus, the difference between the two companies narrowed to only one point. However, an increase in market share in a period when the total market shrank by 20 percent does not mean that the shipment quantities of companies also increased.
Xiaomi’s market share, which ranks third on the list, dropped from 14 percent to 10 percent. Oppo’s share decreased from 12 percent to 9 percent in the third quarter of last year, while vivo’s share decreased from 9 percent to 8 percent. Thus, the weight of Samsung and Apple has increased in the competition between the world’s five largest smartphone manufacturers. On the other hand, the cost pressure faced by Chinese manufacturers, especially in segments where price competition is intense, is noteworthy. The change in market shares also reveals how manufacturers’ product distributions in different price categories are affected by current conditions.
Samsung Galaxy Z Fold 8 series and Apple’s premium models supported sales
Counterpoint Research states that early demand for its new foldable phones was effective in Samsung’s performance in the third quarter. The interest in the Galaxy Z Fold 8, Galaxy Z Fold 8 Ultra and Galaxy Z Flip 8 models contributed to the company maintaining its market leadership. According to the research company’s evaluation, Galaxy Z Fold 8 stood out among these models. The fact that foldable phones are in demand despite their high prices shows that the purchasing behavior of consumers in the upper segment differs from lower priced categories. In addition, the exact impact of the contribution of Samsung’s foldable models to shipments on the company’s total sales volume is not specified in a separate figure in the report.
On the Apple side, the remarkable development was that the company exceeded the 20 percent market share threshold for the first time in the third quarter. According to Counterpoint Research data, Apple reached its highest market share in its history considering the third quarters of the year. The company’s rise to 22 percent shows that demand for high-priced smartphones remains more resilient despite the general contraction in the market. However, absolute shipment data is also needed to evaluate how much of the increase in Apple’s market share is due to shipment performance and how much is due to losses experienced by rival manufacturers. Nevertheless, the fact that Samsung and Apple increased their shares by four points in the same period indicates that the upper segment maintains its relatively strong position in the global market.
Cost increases in memory components are cited as one of the main reasons for the contraction in the smartphone market. Counterpoint Research states that ongoing memory supply problems make production and sales conditions difficult. However, it is not enough to just talk about the problem of access to memory components. Manufacturers’ difficulty in obtaining the memory they need at acceptable prices also increases cost pressure. Especially in affordable phones sold with low profit margins, it becomes more difficult to cover the increase in memory prices without being reflected in the final sales price.
According to data from the research company, global retail smartphone prices have increased by 20 percent so far in 2026. This rise directly affects the costs faced by consumers planning to purchase new phones. The fact that users who buy phones in the upper segment are relatively more resistant to price increases supports the dominance of premium models in the market. In contrast, budget-minded consumers may choose to use their phones longer or postpone their decisions to purchase new devices. In such an environment, it becomes more difficult for manufacturers who focus on affordable phones to maintain their shipment volumes.
Counterpoint Research predicts that the outlook for the remainder of 2026 will also be challenging. According to the research company, manufacturers will continue to prioritize maintaining their profitability rather than increasing shipment numbers. As a result, it is expected to reduce production quantities, simplify product portfolios and focus on higher priced models. Offering fewer models can make it easier for manufacturers to keep development and production costs under control; On the other hand, it may limit consumers’ options, especially in the entry and middle segments. As long as the pressure on memory prices continues, it does not seem easy for affordable smartphones to maintain their position in the market.
Third quarter data shows that the divide between shipment volume and market share in the smartphone market is becoming increasingly clear. Although Samsung and Apple have achieved a stronger position compared to their competitors, the sharp decline in the industry’s total shipments creates challenging conditions for all manufacturers. Maintaining demand for high-priced devices provides an advantage to companies that are strong in the upper segment in the short term. However, if price increases continue for a long time, phone renewal cycles will be longer and total demand will be under more pressure. How the market will shape itself in the last quarter of the year will be closely related to the course of memory costs, manufacturers’ pricing preferences and consumers’ purchasing tendencies.