Khaberni - IDC Research reported on Thursday that the global smartphone market is expected to face its largest ever decline in 2026, with shipments falling to the lowest level in over a decade due to rising memory chip prices that lead to increased device costs.
The report further anticipated that smartphone shipments would decrease by 12.9 percent to 1.12 billion units.
The report mentioned that the decline would affect manufacturers of low-cost Android devices more significantly.
Francesco Gerónimo, Vice President of Global Devices at IDC, said "What we are witnessing is not just temporary pressure, but a tsunami-like shock that originated in the memory chip supply chain."
The rapid expansion in artificial intelligence infrastructure by technology companies like Meta, Google, and Microsoft has led to most of the memory chip supplies being taken up, resulting in higher prices at a time when manufacturers prioritized components for higher-margin data centers over consumer devices.
Analysts said that the rising cost of components will force companies focusing on budget devices to pass expenses onto consumers.
The company expects the average selling price of smartphones to rise by 14 percent to a record level of $523 this year, as manufacturers move towards models with higher profit margins to offset the increasing costs.
