Google Pixel’s Tensor grows as global smartphone shipments continue to fall

Global smartphone shipments contracted 6% in the second quarter of 2026, marking the worst second‑quarter performance since 2013, according to Omdia and multiple industry trackers. The decline coincides with a sharp rise in memory component costs, described by Engadget as a “memory cost crisis,” and a broader supply‑side pressure that also pushed global smartphone SoC shipments down 15% year‑on‑year in the first half of the year, as reported by Counterpoint Research. In the same period, Google’s Pixel line saw an expansion of its in‑house Tensor processor, a development highlighted by 9to5Google amid the overall market contraction. Coverage across the sector underscores the shifting competitive landscape. SamMobile reported that Chinese smartphone brands are losing badly while Samsung retains the top market position, a trend echoed by Telecoms and Telecompaper, which noted Samsung and Apple strengthening their lead as the market contracts.

Apple World Today recorded Apple’s strongest‑ever second‑quarter, shipping 55.1 million iPhones, and Telecompaper confirmed Samsung’s continued dominance. Counterpoint Research and GSMArena.com both flagged a reshuffling of the bill‑of‑materials (BoM) as manufacturers adapt to higher component prices. The backdrop to these movements is a memory‑cost driven squeeze on bill‑of‑materials, prompting manufacturers to redesign product mixes. Telecompaper projected that the current NAND flash shortage, a key driver of the memory cost crisis, should ease in the second half of 2027, potentially relieving pressure on component pricing. The ongoing BoM reshuffle, noted by Counterpoint Research, reflects attempts to mitigate rising memory expenses while maintaining performance.

The combined effect of higher component costs and reduced demand has narrowed the field, allowing Samsung and Apple to consolidate market share as Chinese brands retreat. Future reporting will focus on whether the anticipated easing of NAND flash shortages in late 2027 materialises, as Telecompaper suggests, and how that may influence the pace of BoM adjustments. Observers will also watch the trajectory of Google’s Tensor expansion to see if the chip’s growth can offset broader shipment declines. Counterpoint Research’s next half‑year update on smartphone chipset shipments will provide further insight into whether the 15% YoY drop stabilises or deepens as the market adapts.