Smartphone shipments sank 11 percent worldwide in the second quarter, compared to the same level a year earlier, reaching the lowest second-quarter levels since 2013, amid an ongoing crunch in DRAM memory and NAND storage chips, according to preliminary figures from researcher Counterpoint.

The figures are in line with Counterpoint’s projections for a record market contraction of 14 percent this year. IDC has projected a similar 12.9 percent contraction over 2025.

DRAM and NAND prices continued to surge through the quarter as suppliers continued to prioritise demand from AI data centres over consumer electronics, forcing OEMs to pass along rising prices to consumers via repeated price hikes, especially for entry and mid-tier devices, researchers said.

OEMs responded in different ways, with some increasing prices and accepting profit-margin pressure, while others extended the life-cycle of older-generation models and used promotions to retain budget-conscious buyers, while some simply pulled back on launches and production, said analyst Shilpi Jain.

The Middle East conflict and rising oil and shipping costs, slower global growth, higher inflation, and record-low consumer sentiment also combined to hit smartphone sales, especially among price-sensitive buyers, Jain said.

Samsung retained its top position with 24 percent of the market with the strongest growth among the top five, seeing continued sales momentum of its flagship range.

Apple’s shipments grew 3 percent year-on-year and boosted it to a record 20 percent share.

It was the only major OEM to avoid price hikes during the quarter, although it has since announced them.

The iPhone 17 series remained the top-shipped global model, seeing resilient demand in several markets.

Xiaomi, Oppo and Vivo all saw double-digit percentage shipment declines year-on-year in the quarter due to memory costs, which disproportionately affected the entry and mid-range segments, Counterpoint said.