Cheap Phones Are Dying and Taking MediaTek and Qualcomm’s Market Share With Them

The smartphone chipset market has a new problem, and it starts with memory. Skyrocketing costs for memory chips are making budget and mid-range smartphones less viable for manufacturers; the margins are too thin to absorb the hit. The result is a market quietly shifting toward premium devices, and the chipmakers most exposed to the low end of the market are paying the price.

According to new data from Counterpoint Research, both MediaTek and Qualcomm saw their global smartphone chipset market share decline year-over-year in Q1 2026, a direct consequence of weakening sales in the entry-level and mid-tier segments where both companies have significant exposure.

MediaTek: Still Number One, But Slipping

MediaTek remains the world’s largest smartphone chipset vendor, but its position is under pressure. The company’s market share dropped from 38% in Q1 2025 to 32% in Q1 2026, a six percentage point decline in a single year.

The reason is straightforward: MediaTek’s business is heavily weighted toward the entry-level and mid-range segments, precisely the categories where sales are softening most sharply. When budget phones stop selling, MediaTek feels it more than anyone.

Counterpoint notes it is unlikely MediaTek will launch a Dimensity 9500+ this cycle, as smartphone manufacturers are focused on working through the existing inventory of the current Dimensity 9500. On the mid-range front, the Dimensity 8450 has performed well, boosting shipments through popular devices like the Oppo Reno15 Pro series. But that bright spot has not been enough to offset the broader pressure from collapsing entry-level volumes.

Qualcomm: Late Samsung Launch and Exynos Competition Bite

Qualcomm holds second place in the global chipset rankings at 23% market share in Q1 2026, down from 27% in Q1 2025. Two specific factors are driving the decline.

First, the Galaxy S26 series launched late, meaning Samsung’s flagship lineup was only on sale for the final month of the quarter rather than contributing to the full three months. That timing gap alone represents a significant volume shortfall for Qualcomm. Second, and more structurally significant, Samsung has expanded its use of in-house Exynos silicon across the S26 lineup, reducing the share of units that use Snapdragon processors.

Qualcomm’s Snapdragon 4 and 6 series chips for entry-level and mid-range phones face the same headwinds as MediaTek, softening demand in the segments they serve most.

Samsung Exynos: The Quiet Gainer

While MediaTek and Qualcomm slide, Samsung’s semiconductor arm is moving in the opposite direction. Exynos market share rose from 5% in Q1 2025 to 7% in Q1 2026, modest in absolute terms but directionally significant.

The gain reflects Samsung’s deliberate push to use more in-house chipsets across its Galaxy lineup. The Exynos 2600 powers select Galaxy S26 models, while the Exynos 1680 features in the Galaxy A57 and the Exynos 1480 in the Galaxy A37. Greater vertical integration gives Samsung more control over margins and supply, and every Exynos unit shipped is one fewer Qualcomm or MediaTek chip sold.

Apple: Premium Holds, iPhone 17e Outperforms

Apple sits third in global chipset rankings at 19% in Q1 2026, down slightly from 15% in Q1 2025, though Apple’s chipset numbers are simply a reflection of its own device shipments since it is the sole customer for its A-series silicon.

The iPhone 17 series delivered strong demand, and notably, the iPhone 17e, Apple’s more accessible entry point, outsold the iPhone 16e by a significant margin. The 17e runs on the current A19 chip, meaning Apple’s volume gains came with no compromise on silicon generation. For a company that lives at the premium end of the market, Apple’s Q1 performance illustrates exactly why the premium segment is outperforming right now.

Unisoc: Finding Its Footing in 5G

Unisoc holds 14% market share in Q1 2026, unchanged from Q4 2025 but up from 10% in Q1 2025. The company has found a productive niche powering Redmi devices; its T7250 chip has been a popular choice for 4G-only phones, while the T8300 has helped Unisoc extend its presence into the 5G segment.

For a chipmaker that operates well below the visibility of MediaTek and Qualcomm, Unisoc’s consistent share gains represent a meaningful story about the viability of a focused, cost-competitive approach to chipset manufacturing.

HiSilicon: Premium Demand Steadies the Ship

HiSilicon, Huawei’s in-house chip division, saw a slight decline in Q1 2026 but maintained its 4% share. The Kirin 9000 series inside the new Huawei Mate 80 lineup generated strong demand at the premium tier, providing a stable base even as overall shipments dipped marginally.

The Bigger Picture

The Q1 2026 chipset data tells a coherent story. Memory chip costs are functioning as a filter, making budget device economics increasingly difficult for manufacturers and pushing the market’s centre of gravity upward toward premium devices. Chipmakers most exposed to the low end, primarily MediaTek and Qualcomm’s mid-range lines, are absorbing that shift as market share losses.

The companies benefiting are those with premium exposure, like Apple through its own devices and Samsung through Exynos integration in flagships, and those nimble enough to find specific niches, like Unisoc in Redmi’s 4G and budget 5G lineup.

If memory costs remain elevated through 2026, the pressure on budget phone economics will persist, and the chipset market’s ongoing reshuffling is unlikely to reverse anytime soon.

Market Share Table — Global Smartphone Chipsets (Q1 2025 vs Q1 2026)

Source: Counterpoint Research