Global Smartphone Shipments to Slump 13.9% to 1.08 Billion as Chip Shortage Worsens
Updated
Updated · Reuters · Jun 1
Global Smartphone Shipments to Slump 13.9% to 1.08 Billion as Chip Shortage Worsens
13 articles · Updated · Reuters · Jun 1
Counterpoint cut its 2026 smartphone forecast to a 13.9% shipment decline, down to 1.08 billion units, versus a 12.4% drop projected in February.
Memory chip shortages worsened by the Iran war and chipmakers' shift toward AI chips are hitting low-end phones hardest, with some models priced below $150 at risk of disappearing.
Q1 wholesale smartphone prices rose 14% while shipments fell 3.1%, and Counterpoint said pressure should intensify as inventories built before the supply shock run out.
Apple is expected to keep 2026 shipments flat and Samsung to limit its decline to 4%, while budget-focused brands face steeper drops: Transsion 32%, Xiaomi 28% and Honor 20%.
In the war for microchips between AI and smartphones, who will ultimately pay the price for 'RAMageddon'?
With budget smartphones disappearing, are billions of people about to be priced out of the digital world?
A single chokepoint in the Middle East is crippling the global tech supply chain. What happens next?
Smartphone Shipments Set for Historic 13.9% Drop in 2026 as AI-Driven Memory Shortage Reshapes Industry
Overview
In mid-2026, the global smartphone market faces an unprecedented crisis marked by a sharp structural downturn. Although shipments briefly rose by 3.8% at the end of 2025, this was quickly overshadowed by a severe and unexpected memory chip shortage. The shortage, driven by booming demand from the artificial intelligence sector, has disrupted production and supply chains worldwide. Combined with ongoing economic and geopolitical instability, these interconnected factors have created deep market instability. As a result, the industry is experiencing a fundamental shift, with both manufacturers and consumers struggling to adapt to the new reality.