According to preliminary data from Counterpoint Research, the global smartphone market saw its biggest decline in more than 10 years in the third quarter. The number of devices shipped fell by 20% compared with the same period last year. The findings echo recent reports of underwhelming demand for Apple’s iPhone 18.
This drop to the lowest level since 2012 was mainly caused by a shortage of memory chips and rising component costs. As demand for AI infrastructure requires more resources, manufacturers have been forced to raise retail prices and limit production to protect their profit margins, rather than focusing on sales volumes.
Shilpi Jain, senior analyst at Counterpoint, identified a shift in buying behaviour and noted that people are holding on to their phones for longer.
In addition, there is growing demand for higher-end models and increasing interest in refurbished smartphones.
Despite the overall downturn, Samsung retained its leading position in the sector with a market share of 23%. Although total shipments fell by 3%, the company benefited from a steady availability of components for its mid-tier phones and from strong interest in the Galaxy Z Fold8 series.
Apple also performed strongly, capturing 22% of the market, the first time the company has crossed the 20% mark in a third quarter, although total shipment figures declined. As a result, Apple initially supplied fewer devices to stores than with the broader launch of the iPhone 17 a year earlier.
Other major brands, by contrast, suffered even bigger losses. Both vivo and Oppo saw their shipments plummet by more than 20%. Xiaomi experienced the steepest decline, with shipments dropping by more than 30%.
As a result, Xiaomi’s market share fell to 10% as the brand deliberately withdrew from certain international markets and reduced its focus on budget-friendly devices in order to safeguard its financial returns.
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