Memory chip issues have caused a significant rise in smartphone prices worldwide, resulting in declining sales across global markets. Nevertheless, Apple remains a brand showing growth trends.
Counterpoint Research, a technology market research firm, released its latest report on the smartphone market covering four major markets crucial to the smartphone business: Europe, China, India, and Latin America, issued as four separate reports.
Notably, all four markets experienced negative shipment or sales growth compared to the same period last year. The primary cause is clearly the memory chipset shortage, which has sharply increased production costs and retail prices.
Apple, positioned in the premium phone segment, has bucked the market trend by growing in three of the four major markets, except in China, where sales slowed ahead of the September launch of the iPhone 18 Pro, iPhone 18 Pro Max, and iPhone Ultra.
Overall, shipments in Europe during Q2 2026 fell by 10 percent to 35 million units, the lowest for Q2 since 2023. Latin America also declined 10 percent, marking its steepest drop since Q3 2023. In China, sales during the first 30 weeks of the year dropped 8.6 percent, returning to double-digit declines after the 618 shopping festival. In India, weekly sales from April to July were mostly below last year's levels, with only two weeks of growth coinciding with major discount events.
Apple's performance contrasts with this trend in three markets. In Europe, its shipment share rose from 25 percent in Q2 2025 to 34 percent, matching Samsung, which increased from 31 percent. Chinese brands Xiaomi, Oppo, and Honor all lost market share.
In India, Apple grew 15 percent, the highest in the market, driven by continued demand for the iPhone 17 Series and installment payment programs. In Latin America, Apple grew 5 percent by absorbing increased costs instead of raising prices, supported by strong sales of the iPhone 17 Pro Max and iPhone 17e. Apple holds about 51 percent of the over-$600 price segment in the region, well ahead of Samsung's roughly 40 percent.
China is the sole exception, where Apple entered a seasonal slowdown from July after prices returned to normal levels and most demand was absorbed during the 618 festival. Huawei continues to lead with a weekly sales market share above 20 percent since Q2.
Yan Striyak, co-director of Counterpoint Research, noted that rising component costs have driven up device prices, leading manufacturers to cut promotions to maintain profit margins. Coupled with economic uncertainty and inflation accelerated by the Iran conflict, consumers have delayed spending. Western Europe performed better than expected due to premium trends, whereas Eastern Europe, reliant on budget devices from Chinese brands, contracted more severely. Counterpoint expects Europe's market to remain negative for several quarters, especially in the low-cost segment.
The overall findings from these four reports align with Counterpoint Research's global market report released in July, which indicated that global smartphone shipments in Q2 declined 11 percent—the lowest Q2 level since 2013.
Counterpoint expects memory cost pressures to continue through the second half of 2026, with recovery signs unlikely before 2028. The research firm views memory supply and pricing, rather than consumer demand, as the key factors shaping the market over the next 18 to 24 months.
. Source:Counterpoint Research