Phone processor market shrank by 21 percent

According to data published by Counterpoint Research, the phone processor market has experienced a sharp decline. Because in the third quarter of 2026, smartphone processor shipments decreased by 21 percent compared to the same period last year. Moreover, the rapid increase in memory prices has made this situation even worse.

There are two reasons behind the decline. First of all, as phone prices increase, users use their existing devices for longer. Additionally, manufacturers prefer to keep their stocks low in uncertain market conditions. Therefore, shipments remained weak.

Phone processor market hits MediaTek and Qualcomm

The company most affected by the contraction was MediaTek. Because the demand for affordable phones has weakened. That's why the company's share in ARM-based phone processors decreased from 34 percent to 28 percent. Still, MediaTek retained its market leadership.

Second-place Qualcomm also fell significantly. The share of Snapdragon processors dropped from 25 percent to 22 percent. In addition, Samsung's use of its own Exynos processors in some models of the Galaxy S26 series increased the pressure on Qualcomm. So it was a tough quarter for the two biggest players in the phone processor market.

Apple and Samsung on the Rise

On the other hand, Apple and Samsung strengthened their positions. Apple increased its share by four points to 21 percent. So it came close behind Qualcomm. Moreover, he is one step closer to sitting in second place.

Samsung, on the other hand, increased its share by two points to 8 percent. The company's increased use of Exynos processors in Galaxy models has strengthened the position of its semiconductor unit in the market. At the same time, this move also explains Qualcomm's loss.

RAM Prices Will Continue to Increase

Counterpoint expects the rise in memory costs to continue. According to estimates, RAM prices will increase by another 5 percent in the fourth quarter of 2026. Moreover, this rise is expected to continue in 2027.

Rising costs may increase the pressure on manufacturers. Therefore, consumers may postpone the purchase of new devices. As a matter of fact, Counterpoint predicts that the global smartphone market may shrink by another 3 to 4 percent in 2027. This table also means a new pressure for the phone processor market.

If the memory crisis continues, especially entry and mid-segment phones will be more affected. While trying to keep prices under control, manufacturers may have to restrict hardware features.