Smartphone Shipments Just Hit a New Low. Thanks, RAMageddon
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If you’re holding on to your phone despite a wave of new, high-powered options, you’re not alone. Hitting the lowest mark since 2012, smartphone shipments worldwide continued a months-long skid, slumping 20% in the third quarter of 2026 due to the RAMageddon memory shortage, according to a new analysis by Counterpoint Research.
Counterpoint said that the cost of DRAM and NAND — the two main memory chips used in smartphones, computers and data centers — continues to rise, forcing manufacturers to raise phone prices, which are up 20% overall this year. Memory costs more because there’s less of it to go around, thanks to the massive AI infrastructure buildup and its voracious appetite for chips.
It was the second consecutive quarter to take “the full brunt of the memory crisis,” Shilpi Jain, a senior analyst at Counterpoint, said in a statement Monday.
Research firm Gartner has estimated that companies will spend $1.4 trillion on AI infrastructure this year and $2.6 trillion overall. More than 70% of global memory chip production will go toward AI investment, TrendForce said. Global fears about rising inflation for most products and services are also likely suppressing phone sales.
Some manufacturers fared all right during the third quarter, according to Counterpoint. Samsung’s market share was 23%, up from 19% in 2025, thanks in part to “robust initial demand” for the Galaxy Fold 8. Apple’s third-quarter market share was 22%, the first time the company has surpassed 20% in that three-month period. But both companies saw a year-over-year decline in shipments.
Things aren’t looking rosy for customers’ wallets, either. Earlier this month, Samsung hiked prices by $100 for its Galaxy S26 phones, and Apple’s new iPhone 18 Pro and Pro Max launched last month with prices set $100 above the previous generation.
How are consumers responding?
The third quarter saw a number of notable smartphone introductions, including Samsung’s Galaxy Z Fold 8 and Galaxy Z Flip 8, the Google Pixel 11 and, in the period’s waning days, the iPhone 18 Pro line and Apple’s first foldable, the $1,999 iPhone Duo. Preorders for the iPhone Duo begin on Friday.
Shoppers will be cautious about buying the latest and greatest in smartphones because of higher prices, says TMT analyst Paolo Pescatore.
“New design features, including foldables, may generate excitement and appeal, but their steep price premiums remain hard to justify when most people want a device that delivers robust, reliable connectivity,” Pescatore told CNET via email. “For many, the question is straightforward: why replace a perfectly functioning smartphone that continues to meet their everyday needs?”
Counterpoint Research found in a recent survey that half of respondents — spanning the US, UK, India, China and Germany — would wait until holiday sales to buy a new phone. That number rises to 56% among Gen Z consumers. Counterpoint’s Jain said consumers are increasingly shopping for “refurbished devices and prioritizing higher-value devices.”
With sales down, phonemakers might resort to different strategies for customers, including refurbished handsets, repairs and trade-in schemes, Pescatore said. Cellphone carriers like T-Mobile, Verizon Wireless and AT&T could also use financing plans and bundled services as enticements.
As AI investment continues to devour memory supply, phone prices won’t be falling anytime soon. And with companies focusing more on premium devices, there could be fewer budget alternatives available for customers, Counterpoint Research said.
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