Recently, a renowned research institution unveiled mobile phone sales data for the third quarter of 2026, juxtaposed with figures from the same period in 2025.

The data reveals a stark downturn in smartphone sales, primarily attributed to the soaring costs of memory chips. Global smartphone sales plummeted by 20% in the third quarter, marking the bleakest performance since 2012 and hitting a 14-year low.

Frankly, this downturn comes as no great shock. After all, the prices of memory and flash storage have skyrocketed four to fivefold, inflating mobile phone production costs and, consequently, their retail prices. It's only natural that fewer consumers are opting to purchase new phones.

What came as a surprise, however, is the uneven impact across manufacturers. Instead of a uniform decline, it's a story of contrasting fortunes: some are gaining ground, while others are suffering significant setbacks.

As illustrated in the chart below, here's a comparison of market share among major brands over the two quarters.

You'll notice that two manufacturers are making gains: Samsung, which saw its market share rise from 19% to 23%, and Apple, which increased from 18% to 22%.

This marks the first time Apple's market share in the third quarter has surpassed 20%. It's clear that Apple and Samsung have largely weathered the storm, maintaining robust sales. Instead, they've capitalized on the price hikes to wrest market share away from domestic mobile phone manufacturers.

In stark contrast, domestic mobile phone manufacturers are all experiencing a downturn.

Xiaomi's market share plummeted from 14% to 10%, a decline exceeding 30%. OPPO's share dropped from 12% to 9%, VIVO's from 9% to 8%, and other brands collectively saw their share decrease from 29% to 27%.

Why are Apple and Samsung gaining market share while domestic brands are faltering?

The dynamics of this round of structural reshuffling, influenced by memory chip prices, have shifted. In the past, when smartphone sales took a hit, low-priced models typically sustained sales volumes.

But this time, memory chips have hit low-priced phones hardest, as profit margins have all but vanished. Many manufacturers focusing on budget-friendly models have already slashed their shipment plans for these devices.

Relatively speaking, high-end models are less susceptible to these fluctuations, as this segment is less price-sensitive.

In the high-end market, Samsung and Apple clearly hold more sway, while domestic brands lag behind. Consequently, with domestic brands' low-end models seeing reduced shipments and their high-end models unable to compete with Apple and Samsung, it's only natural that domestic brands are on the decline while Samsung and Apple are thriving.

Looking ahead, with memory chip prices poised to climb even higher, the outlook for domestic brands is grim. Manufacturers like Apple and Samsung, which wield pricing power in the high-end market, are well-positioned to weather the storm. In contrast, domestic brands, which predominantly rely on low-priced, high-volume sales, will face even steeper challenges.