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AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low

A massive surge in semiconductor memory costs has triggered an unprecedented contraction in the mobile hardware industry. As artificial intelligence demands monopolize global fabrication capacity, handset manufacturers are abandoning the budget tier to protect their profit margins.

Factlen Newsroom· Updated

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Illustration: Global smartphone shipments fell by a record 22 percent in the third quarter as rising component costs pushed retail prices higher.From: Global Smartphone Shipments Plunge Record 22 Percent in Third Quarter as Memory Costs Surge

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Key numbers

−11%
Q2 2026 global smartphone shipment decline
24%
Samsung's Q2 global market share
20%
Apple's record Q2 market share
$523
Projected record average selling price for smartphones
60%
Memory's share of a budget phone's component cost

From: AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low

Charts, maps and images

Samsung and Apple consolidated their grip on the market, accounting for a combined 45 percent of global shipments.From: Global Smartphone Shipments Plunge Record 22 Percent in Third Quarter as Memory Costs Surge ·
As artificial intelligence demand drives memory costs up by 350 percent, smartphone shipment volumes have collapsed.From: Global Smartphone Shipments Plunge Record 22 Percent in Third Quarter as Memory Costs Surge ·
Samsung and Apple captured record market shares in Q2 2026, while budget-focused brands saw steep declines.From: AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low ·
Memory chips account for a vastly larger percentage of the hardware budget in entry-level devices.From: AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low ·
Illustration: Data center build-outs for artificial intelligence have monopolized global semiconductor fabrication capacity, squeezing mobile manufacturers.From: Global Smartphone Shipments Plunge Record 22 Percent in Third Quarter as Memory Costs Surge ·
The rapid expansion of AI data centers has drained the global supply of standard DRAM and NAND flash memory.From: AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low ·

Timeline

October 2026

  1. Global Smartphone Shipments Plunge Record 22 Percent in Third Quarter as Memory Costs Surge

July 2026

  1. AI's Memory Demand Triggers Global Smartphone Market Collapse, Shipments Fall 11% to 13-Year Low