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Smartphone Shipments Fall 20% in Q3 2026 as AI Data Centers Absorb Memory Chips, Counterpoint Says

November 1, 2026 at 19:09 EST

Infra & Chips

Global smartphone shipments fell 20% in the third quarter of 2026, the weakest third quarter since 2012, according to Counterpoint Research, as AI data centers draw heavily on memory chips that phone makers also need.

Q3 2026 · Smartphone market

Smartphone shipments fall 20% as AI data centers squeeze memory supply

The third quarter was the weakest for this period since 2012. Competition for DRAM and NAND memory is pushing phone prices up and reshaping market share.

−20%

Global smartphone shipments, Q3 2026 vs. prior year

2012

Weakest third quarter in the series since this year

+20%

Expected rise in phone prices this year

−30%+

Xiaomi shipment decline, the steepest among the top five

Size of the change, drawn to scale

Each block equals 10 percentage points. Xiaomi's decline is more than 30%, so its column is shown at three blocks as a minimum.

−20%

Global shipments

−30%+

Xiaomi shipments

+20%

Phone prices

How the squeeze spreads

A demand shift in data centers reaches the phone aisle.

AI data centers draw on memory chips

→

Memory availability tightens

→

Device makers face higher costs

→

Higher prices and fewer low-cost options

Market share

Scale and supply arrangements appear to be cushioning the largest players.

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