Samsung and Apple were the winners in a Q3 smartphone market that dropped 20%

Samsung & Apple Dominate Shrinking Q3 Smartphone Market

The global smartphone market experienced a significant downturn in the third quarter of 2026 (July-September), with shipments plummeting 20% year-over-year, according to a new report from Counterpoint Research (CR). Amidst this challenging landscape, Samsung and Apple emerged as the standout performers, successfully growing their market shares.

Market Share Leaders Emerge from Decline

Samsung secured the top position, capturing a substantial 23% of the market, a notable increase from 19% in the same quarter last year. Apple followed closely, achieving a remarkable 22% market share, up from 18% in Q3 2025. These two giants successfully navigated a market that saw other major players consolidate their positions, but with reduced slices of the pie.

Lowest Q3 Shipments in 14 Years

CR highlights that Q3 2026 marked the lowest smartphone shipment volumes for a third quarter in 14 years. The primary driver for this decline is attributed to "continued memory shortages," which the report elaborates are not a general scarcity but rather a lack of affordably priced memory components. This has directly impacted the production and pricing of many devices.

Foldables Boost Samsung, Premium Demand Lifts Apple

Samsung's impressive performance is credited to the "robust early demand" for its latest foldable devices, including the Galaxy Z Fold8, Fold8 Ultra, and Flip8, with the Fold8 reportedly leading the charge. For Apple, this quarter marked a historic milestone as its market share surpassed 20% for the first time ever in a third quarter. The report indicates that demand for premium smartphones remained strong and resilient, while the affordable segment of the market is being squeezed by rising costs due to increasingly expensive memory.

Profitability Over Volume: The New Smartphone Strategy

The impact of memory costs is evident in global retail smartphone prices, which have risen by an average of 20% this year. Looking ahead, CR anticipates that the market outlook will "remain challenging." Smartphone manufacturers are increasingly shifting their focus from shipment volumes to profitability. This strategic pivot is expected to manifest in continued production cuts, streamlined product portfolios, and an amplified emphasis on high-end, premium devices.

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