Counterpoint Research said on Friday that worldwide smartphone system-on-chip (SoC) shipments declined 21% from a year earlier in the third quarter of 2026. Counterpoint said mid-tier and entry-tier devices experienced the most pressure. Counterpoint said Apple and Samsung Electronics handled the downturn better because both companies have integrated supply chains and an established focus on premium devices. Counterpoint said higher memory costs, longer replacement cycles and cautious inventory management by original equipment manufacturers weighed on the market.
UNISOC and MediaTek experienced greater pressure because both companies depend more heavily on mid-tier and low-end smartphones. Counterpoint said Qualcomm faced pressure from Samsung's decision to divide Galaxy S26 chip supply between Snapdragon 8 Elite Gen 5 and Samsung's Exynos 2600. Counterpoint also cited weaker sales among China's smartphone manufacturers as a headwind for Qualcomm.
Counterpoint Senior Analyst Shivani Parashar expects new flagship chips to support premium smartphone SoC shipments in the fourth quarter. Parashar identified Apple's A20 series, MediaTek's Dimensity 9600 Pro and Qualcomm's Snapdragon 8 Elite Gen 6, all using Taiwan Semiconductor Manufacturing Company's 2nm process. However, Counterpoint forecasts premium-chip volumes below the level recorded a year earlier.
Counterpoint said smartphone memory prices increased 5%-10% in the third quarter. Counterpoint expects memory prices to rise another 5% from the preceding quarter in the fourth quarter. Some entry-level smartphone vendors have begun using recycled memory to limit bill-of-material costs. However, Counterpoint expects technical obstacles involving SoC, peripheral and RF integration to restrict adoption.
Counterpoint Principal Analyst Soumen Mandal forecasts a 20% decline in global smartphone SoC shipments in 2026. Mandal expects shipments to fall another 3%-4% in 2027. Mandal expects memory prices to stay high but fluctuate less next year. Counterpoint expects flagship SoCs to remain broadly stable in 2027 despite increased costs associated with moving to 2nm process technology. Counterpoint expects rising memory and component prices to maintain pressure on the wider smartphone supply chain.
Apple shares traded at $345.10 before the market opened on Friday, a decline of 1.09%. Benzinga Pro data showed Apple shares approaching the stock's 52-week high of $351.73.
Apple and Samsung Weather Smartphone Chip Market Downturn Better Than Competitors
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Summary
Counterpoint Research reported that global smartphone SoC shipments fell 21% year-on-year in Q3 2026, with mid-tier and entry-tier models suffering the most. Apple and Samsung fared better thanks to strong supply chains and premium device focus. UNISOC and MediaTek struggled amid weak lower-tier demand. Qualcomm also faced pressure from Galaxy S26 chip splits and soft Chinese sales. Amid market uncertainty, the fear and greed index shows caution, while altcoins to watch remain under investor radar.
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