The market research firm Counterpoint reported that global smartphone shipments are expected to drop by 2.1% next year, and that rising chip costs will impact demand.
Electronics supply chains around the world have been affected by a shortage of traditional chips in recent months amid manufacturers shifting their focus to advanced memory chips suitable for semiconductor applications designed for artificial intelligence.
According to a Counterpoint report focusing on technology, Chinese smartphone brands like "Honor" and "Oppo" are expected to be more susceptible, especially in the low-end phone category due to narrow profit margins.
The research firm last month stated that Nvidia’s move to use memory chips suitable for smartphones in its artificial intelligence servers could double server memory prices by late 2026.
Earlier, preliminary data from the International Data Corporation showed that global smartphone shipments increased by 2.6% in the third quarter of this year, supported by rising demand for advanced devices equipped with artificial intelligence technologies.
According to Reuters, demand for smartphones remained strong in the third quarter thanks to advanced features, attractive pricing, and promotional offers, despite economic uncertainty and challenges posed by tariffs.
