Smartphone market expects record decline in 2026 due to shortage and rising memory prices
Kyiv • UNN
IDC predicts the largest ever decline in mobile device shipments. The market will fall to a decade-low due to rising memory chip costs.
The International Data Corporation (IDC) predicts the largest decline in mobile device shipments ever recorded, which will lead to the market falling to ten-year lows. The main reason for the crisis was the rapid increase in the cost of memory chips, provoked by the reorientation of manufacturers to serve artificial intelligence infrastructure. This was reported by Reuters, writes UNN.
Details
According to analysts' report, global smartphone shipments will fall by 12.9%, totaling only 1.12 billion units by the end of the year. Manufacturers of inexpensive Android-based devices, which do not have sufficient financial reserves to absorb the growing costs of components, will be hit hardest.
At the same time, giants such as Apple and Samsung can strengthen their positions and increase their market share, as smaller competitors will be forced to significantly raise prices or even cease operations due to unprofitability.
Prioritizing artificial intelligence over consumer electronics
The crisis in supply chains arose due to the aggressive development of data centers by Meta, Google, and Microsoft, which are buying up the main volumes of DRAM memory. Chip manufacturers prioritize orders for artificial intelligence servers due to their higher margins, which leaves the smartphone market in a state of deficit.