AI news · Phones · memory
AI memory crunch pushes phone shipments to a 14-year Q3 low
Data centres are soaking up memory chips, so phones cost more and buyers hold off, Counterpoint says.
Worldwide smartphone shipments fell 20 per cent from a year earlier in July to September 2026, the weakest third quarter in 14 years, Counterpoint Research said on Monday 12 October 2026. Counterpoint blames a shortage of memory chips, CNET reports.
The link to AI is direct. The same memory chips go into phones, computers and data centres, and the AI building spree is buying up supply. TrendForce estimates more than 70 per cent of global memory production goes to AI investment, CNET notes. Phone makers pass the cost on: retail phone prices are up 20 per cent this year, Counterpoint says.
Only the two biggest brands gained share. Samsung took 23 per cent of shipments, up from 19 per cent, and Apple 22 per cent, up from 18 per cent, while Xiaomi fell to 10 per cent from 14, GSMArena reports. Budget phones lose the most ground as memory costs climb. Counterpoint expects a difficult end to 2026.
Fewer new phones means mobile audiences upgrade more slowly, so mobile ad creative keeps running on older screens and older chips for longer.
Sources
- CNET: Smartphone Shipments Just Hit a New Low. Thanks, RAMageddon. Checked
- GSMArena: Samsung and Apple were the winners in a Q3 smartphone market that dropped 20%. Checked
Alexandre S.
Alexandre S. is a creative ad strategist and copywriter with ten years' experience in digital marketing across multiple channels.