Samsung Reclaims Smartphone Crown Amid Global Market Challenges

Samsung Electronics overtakes Apple to become the global leader in the smartphone market as overall shipments drop to their lowest since 2013. The decline is driven by a memory supply crisis impacting production costs, which spiked sharply due to demand from AI data centers, affecting manufacturers across the industry.

Samsung Electronics has regained its leadership position in the global smartphone market, surpassing competitor Apple in the second quarter of the year. This comes as industry shipments declined dramatically, marking the lowest levels since 2013 due to a significant memory supply crisis.

According to The Korea Herald, global smartphone shipments dropped by 11% year-on-year, primarily due to shortages in DRAM and NAND flash memory. These shortages resulted from chipmakers shifting focus to meet the burgeoning demands of artificial intelligence data centers. Memory now accounts for a substantial portion of production costs, pressuring manufacturers and consumers alike.

Counterpoint Research data highlights Samsung's 24% stake in global shipments, edging out Apple's 20%. Samsung's ascent is credited to controlled price rises and robust marketing efforts, particularly in India and the Middle East. Conversely, Chinese brands such as Xiaomi and Oppo experienced declines due to the supply crunch, while analysts project further shipment decreases in the coming months.