The global smartphone market is bracing for a significant downturn in 2026, with shipments expected to plummet to a level not seen in over a decade. This decline, predicted to be around 12.9% to 1.12 billion units, is attributed to the sharp rise in memory chip prices, leading to increased device costs, according to a report by the International Data Corporation (IDC).
The impact of this decline is expected to be particularly harsh on low-end Android manufacturers, while industry leaders like Apple and Samsung are likely to strengthen their market positions as smaller competitors face challenges or exit the market altogether.
“The situation is a ‘tsunami-like shock’ originating in the memory supply chain, indicating a structural shift in the market rather than a temporary setback,” said Francisco Jeronimo, vice president for Worldwide Client Devices at IDC.
The surge in component costs is projected to push the average selling price of smartphones to a record $523 this year, a 14% increase, as manufacturers pivot towards higher-margin models to offset rising expenses.
Despite the anticipated recovery in 2027 and 2028, IDC suggests that the market may not fully return to its previous state, signaling a long-lasting impact of the memory crisis on the industry.
Source: mint – technology