Global Smartphone Shipments Tumble 11% in Q2 as AI Data Centers Drain Memory Chip Supply

According to Reuters citing Counterpoint Research, global smartphone shipments fell 11% year-over-year in Q2, the worst performance for the period since 2013. The decline was primarily driven by memory chip shortages, as suppliers prioritized capacity allocation to higher-margin AI data center clients, forcing handset makers to raise prices amid rising component costs.

Apple defied the trend with iPhone shipments growing 3% in Q2, reaching a record 20% global market share. Samsung led with 24% market share, while Xiaomi, Oppo, and Vivo faced the steepest declines as budget and mid-range devices were hit hardest by memory cost pressures.