In the third quarter of 2026, the consumer electronics market witnessed a significant downturn, with various products experiencing sluggish sales and failing to meet expectations.

Initially, PC sales data was disclosed, revealing a staggering 20% decline in global PC sales during the third quarter, marking the steepest drop in over ten years. The unchecked surge in memory prices has resulted in a corresponding slump in sales, as consumers are reluctant to purchase computers at inflated prices.

Soon after, smartphone sales figures for the third quarter were also unveiled, showing a comparable 20% decrease, the most severe since 2012. It is evident that consumers are also hesitant to buy smartphones, tightening their budgets in response to rising costs.

Regarding the actual smartphone sales rankings, the top five brands remain unchanged for the time being, consisting of Samsung, Apple, Xiaomi, OPPO, and VIVO.

However, notable shifts have occurred in market share. Most prominently, Samsung and Apple have seen their shares increase, with Samsung rising from 19% to 23% and Apple from 18% to 22%.

Conversely, Xiaomi's share has decreased from 14% to 12%, OPPO's from 12% to 9%, VIVO's from 9% to 8%, and other brands' from 29% to 27%.

Samsung has successfully maintained its global leadership, surpassing Apple by a mere 1 percentage point. Meanwhile, Xiaomi has held onto its position as the third-ranked global brand and the top domestic smartphone brand, outperforming OPPO by 3 percentage points.

What accounts for such a severe decline?

Undoubtedly, all consumer electronics products are starting to feel the pinch from the escalating memory prices. Memory costs have skyrocketed, averaging a four to fivefold increase. In smartphones and PCs, storage constitutes a fixed cost, accounting for over 20% of the Bill of Materials (BOM). The steeper the rise in storage costs, the quicker the overall product costs escalate, ultimately necessitating price hikes.

When prices go up, consumers naturally cut back on their purchases. After enduring two quarters of hardship, most smartphones and computers experienced price increases in the third quarter, prompting consumers to delay their purchases.

In this wave of price hikes, low-end products have been hit the hardest, as they are more sensitive to price fluctuations compared to high-end products, whose target audiences are less responsive to price changes.

Consequently, Apple and Samsung, which adopt a high-end strategy, have fared relatively better, while Xiaomi, OPPO, and VIVO, which offer lower average prices, have struggled more.

To compound the issue, storage chip prices have not yet ceased their upward trajectory. The smartphone and PC industries are anticipated to confront even greater challenges in the future, leaving it uncertain how these manufacturers will weather the storm.