The global smartphone industry is currently facing its most difficult period in over a decade, with second-quarter shipments plummeting by 11 percent to reach their lowest point since 2013. This downturn is primarily fueled by a relentless shortage of memory chips, which has forced manufacturers to inflate prices, significantly cooling consumer demand. As suppliers increasingly divert their resources to support the booming AI data center sector, entry-level and mid-range devices have borne the brunt of these rising costs, leaving the broader market struggling to regain momentum.

Despite the industry-wide slump, Apple managed to defy the downward trend by securing a record 20 percent global market share, bolstered by steady demand for its premium iPhone lineup. Meanwhile, Samsung successfully reclaimed the lead with a 24 percent market share, largely due to the popularity of its Galaxy S26 series and strategic pricing in key regions like India and the Middle East. Conversely, manufacturers like Xiaomi, Oppo, and Vivo experienced sharper declines, largely due to their heavy reliance on the budget-friendly segment. With experts predicting the memory crunch could stretch until 2027, the market is bracing for a challenging year with an anticipated total shipment decline of 14 percent.