Global smartphone shipments fall 20% in Q3 as AI drives chip shortages

Counterpoint data shows the weakest third quarter since 2012 as AI data centers pull memory supply away from phone makers The smartphone industry just had its worst third quarter in more than a decade. Global shipments fell 20% year-over-year in Q3 2026, according to preliminary data Counterpoint Research released on October 12, 2026. The culprit is not weak demand for phones so much as overwhelming demand for something else. AI data centers are consuming memory chip production capacity, and smartphone makers are paying the price. Xiaomi took the biggest hit among the major players, with shipments dropping by over 30%.

Source: Crypto Briefing