Global Smartphone Shipments Expected to Drop in 2026
Global smartphone shipments are set to decline in 2026, reflecting softer demand, rising component prices, and ongoing strain on electronics supply chains. Market research firm Counterpoint expects global smartphone shipments to fall by 2.1% in 2026, citing higher chip costs and persistent supply disruptions affecting manufacturers worldwide. In recent months, supply chains have faced shortages of conventional chips. Counterpoint notes that much of the pressure comes from manufacturers shifting production toward advanced memory chips used in semiconductors for artificial intelligence applications.
Chinese Brands Hit Hardest
Chinese smartphone brands are expected to feel the strongest impact. Counterpoint’s report highlights that companies such as Honor and Oppo are particularly vulnerable, especially in the low-cost segment. Margins in this segment are already thin. This limits manufacturers’ ability to absorb higher component prices or pass them on to consumers without affecting demand.
Rising Pressure from the AI Sector
Demand from the artificial intelligence industry is adding another layer of pressure to the smartphone market. Counterpoint states that AI companies are increasingly competing for the same memory chips used in smartphones.
Nvidia’s Shift to Smartphone-Grade Chips
The firm highlighted Nvidia’s move to use smartphone-grade memory chips in AI servers, which could cause server memory prices to double by the end of 2026.
Structural Changes in the Semiconductor Industry
Counterpoint sees this trend as evidence of a broader structural shift in the semiconductor industry. As multiple industries compete for limited chip resources, the pressure on the smartphone market is expected to continue through 2026.
