Memory Shortage Drops Smartphone Shipments to 13-Year Low

A global shortage of memory chips has led to the lowest smartphone shipments in 13 years. However, Apple and Samsung are managing to come out ahead, according to new data from Counterpoint Research for Q2 2026.

What’s Actually Happening

The smartphone industry relies heavily on DRAM and NAND flash memory, which store apps and photos while keeping your phone running smoothly. Currently, these chips are in critically short supply, causing a bottleneck throughout the industry. Smaller manufacturers that can’t secure enough components simply can’t produce phones, which shrinks the overall market.

This situation has pushed global smartphone shipments down to levels we haven’t seen since 2013, a time when touchscreen phones were still gaining traction and the iPhone 5s hadn’t even been released.

Think of it like a restaurant running low on an essential ingredient. A small diner might have to shut down for the night, but a big chain with solid supplier contracts keeps serving customers while its competitors go dark.

Why Apple and Samsung Are Winning

Both Apple and Samsung enjoy advantages that smaller rivals just can’t match. They have long-term supply agreements with memory manufacturers, allowing them priority access during shortages. Samsung has an edge, too, since it produces its own memory chips. This means it can direct supply to its own devices before selling to others.

In Q2 2026, Samsung regained its lead in global smartphone shipments, surpassing Apple. Meanwhile, Apple has managed to hold its ground better than many others, with strong shipment numbers despite the overall market decline.

Mid-tier Android manufacturers are the ones really struggling. They depend entirely on third-party chip suppliers and lack the purchasing power to secure priority allocations.

How Bad Is the Shortage?

Counterpoint Research’s Q2 2026 findings reveal a troubling situation. The market hasn’t been this low since 2013, a time when global smartphone penetration was a fraction of what it is now. The current decline, with smartphones in nearly every pocket, indicates a supply-side issue rather than a lack of demand. People still want phones; they just can’t get the ones that manufacturers can’t produce.

Economic uncertainty adds to the pressure. In many major markets, consumers are holding onto their current phones longer, waiting for prices to stabilize before upgrading.

What This Means for You

If you’re in the market for a new phone, here are a few things to keep in mind. First, expect limited availability on some mid-range Android models outside the Samsung and Apple ecosystems. If a specific phone you want is out of stock, the memory shortage could be the reason.

Second, prices for memory-heavy models (like those with 256GB or 512GB of storage) might stay high longer than usual. When supply is tight, manufacturers tend to prioritize profits over volume, meaning discounts on higher-storage models are less likely in the near future.

Lastly, if you’re ready to upgrade and eyeing a flagship from Apple or Samsung, you should find availability less of an issue. Both companies have secured their supply chains well enough to keep their flagship lines moving.

Community Reaction

“Samsung making their own chips is such an obvious advantage in situations like this. They’re basically playing a different game than everyone else.”

— u/TechWatcher_PDX, r/Android

“Crazy that we’re back to 2013 shipment numbers. The market is basically just Apple and Samsung at this point for anyone who can actually get a phone.”

— YouTube comment on Android Authority’s Q2 2026 breakdown

What To Watch

• Samsung Galaxy Z Fold 8 launch: Samsung is gearing up to release the Galaxy Z Fold 8, which is said to have a wider form factor. Its performance in this constrained market will be an early indicator of whether flagship foldables can withstand the broader slowdown.
• Memory chip pricing: Keep an eye on quarterly earnings reports from DRAM manufacturers like SK Hynix and Micron. If chip prices start to drop, it usually means the shortage is easing, which would improve phone availability in one to two quarters.
• Q3 2026 shipment data: Counterpoint Research’s upcoming quarterly report will show whether the market continues to decline or if supply begins to recover as we approach the holiday season, typically the strongest quarter for smartphone sales.

Sources: Ars Technica | Android Authority