MediaTek and Qualcomm have both lost ground in the global smartphone chipset market as rising memory chip costs force handset makers to rethink their product strategies.

New figures from Counterpoint Research show MediaTek remained the world’s biggest smartphone chipset supplier in Q1 2026, but its share fell from 38% in Q1 2025 to 32%.

Qualcomm, the second-largest supplier, also slipped year-on-year, dropping from 27% to 23% over the same period.

The shift comes as smartphone makers face higher component costs, particularly for memory chips.

That has hurt demand for lower-priced, lower-margin devices, where manufacturers have less room to absorb cost increases.

Premium smartphones have fared better, with stronger margins allowing vendors to protect profitability despite higher bill-of-material costs.

MediaTek has been particularly exposed because of its strong position in entry-level and mid-tier handsets.

Counterpoint said weaker demand in those segments weighed on shipments, though the company’s Dimensity 8450 helped support mid-range volumes through devices such as Oppo’s Reno15 Pro.

Qualcomm’s decline was partly linked to Samsung’s Galaxy S26 series.

The flagship phones launched late in the quarter, limiting the sales window, while some models used Samsung’s own Exynos 2600 chipset instead of Qualcomm’s Snapdragon silicon.

Samsung was one of the main beneficiaries, with Exynos shipments rising year-on-year. Its market share increased to 7% in Q1 2026, helped by the Galaxy S26 as well as mid-range models using Exynos 1680 and Exynos 1480 chips.

Apple ranked third with 19% share, up from 15% a year earlier, driven by strong demand for iPhone 17 models, including the iPhone 17e running the A19 chip.

UNISOC also gained ground, reaching 14% share, supported by Redmi devices and demand for its 4G and 5G chipsets.

Huawei’s HiSilicon held 4% share, with demand for Kirin 9000-powered premium Mate 80 models helping offset a slight shipment decline.

Counterpoint’s Q1 2026 breakdown put MediaTek at 32%, Qualcomm at 23%, Apple at 19%, UNISOC at 14%, Samsung at 7%, HiSilicon at 4%, and others at 1%.