Apple and Samsung managed to increase their shares in the shrinking market thanks to their strong product ranges focusing on upper segment (premium) devices.
According to preliminary data of the Worldwide Quarterly Mobile Phone Tracking Report prepared by the global technology market research and consultancy company IDC (International Data Corporation), global smartphone sales in the third quarter of 2026 decreased by 22 percent compared to the same period last year, falling to 255.3 million units. This figure was recorded as the steepest annual decline recorded in any quarter in the smartphone market to date.
The main reasons for this historical contraction in the market are; These include the memory (chip) crisis triggered by artificial intelligence technologies, rapidly increasing parts costs and disruptions in the supply chain.
"THE WORST PERIOD IS NOT OVER YET"
IDC's Director of Global Device Research, Nabila Popal, stated that the sharp decline that the industry has been waiting for for a long time has finally occurred, and said, "However, the worst period is not over yet." he warned.
Stating that the bottom has not been seen in the market yet, Popal emphasized that memory costs have increased by approximately 350 percent since last year and continue to rise. According to Popal, this situation seriously pressures the profit margins and production capacities of phone manufacturers. Although the rate of increase in memory prices slowed down in the third quarter compared to previous months, the high cost of other critical phone parts exacerbates the burden on the sector.
RECOVERY IS EXPECTED IN 2028 AT THE EARLIEST
Market research company IDC predicts that growth in the sector will remain very limited throughout 2027 and that a possible recovery will begin in 2028 at the earliest. According to the report, the most important change in the industry is that manufacturers are starting to accept that increasing costs are now "permanent".
The company also points out that despite this challenging situation, the crisis can create new opportunities. It is estimated that manufacturers who can adapt their products, prices and marketing strategies to this new high cost system will gain market share by getting ahead of their competitors.
CONSUMERS ARE USING THEIR CURRENT PHONES FOR LONGER
IDC Global Devices Vice President Francisco Jeronimo pointed out that the cost of the crisis is now reflected on consumers rather than manufacturers. Jeronimo said that as the increasing prices are reflected on the labels in stores, consumers prefer to use their existing devices for longer instead of buying new phones.
Stating that Chinese brands, which especially rely on lower segment (more affordable) phone sales, are going through a very difficult period, Jeronimo said, "In this environment where demand is falling, companies have to make a difficult choice between making a profit and maintaining sales volumes." he said. According to Jeronimo, giant manufacturers that can solve the supply problem and have a high proportion of high-end expensive phones in their sales will continue to grow in the coming period.
APPLE AND SAMSUNG EXPANDED THEIR MARKET SHARE
IDC Research Deputy Director Kiranjeet Kaur also stated that the general ranking among manufacturers has not changed, but the decline in sales of brands such as Xiaomi, OPPO and vivo has accelerated, while Samsung and Apple have increased their market shares.
Addressing consumers who are considering buying a new phone, Kaur stated that it would be more advantageous to benefit from campaigns and discounts in the last quarter of the year (October-December period) instead of waiting for the prices to drop, and that the most attractive deals are expected in this period.
Kaur also stated that some manufacturers increased production despite low sales due to the concern that "we will not be able to find parts next year" and warned that this situation could lead to excess stock (inventory bloat) as we enter 2027.
THE WORLD'S TOP 5 SMARTPHONE MANUFACTURERS (2026 - 3RD QUARTER)
(Prepared based on preliminary results. Shipment figures are in millions of units.)
company
2026 Q3 shipments (million)
2026 market share
2025 Q3 shipments (million)
2025 market share
Annual change
Source: IDC Quarterly Mobile Phone Tracker, October 14, 2026
Table Notes:
The data are the first preliminary report figures released and may be updated in the future.
Figures only include shipments of branded devices to stores/distributors, not sales to subcontractors and second-hand (refurbished) devices.
Company names listed represent the parent holding company, including sub-brands affiliated with that company.
In IDC market research, if the market share difference between two brands is 0.1 percent or less, the situation is considered a statistical "tie".
