Khaberni - In a sign that does not hold much optimism for the smartphone industry, AMOLED screen shipments are headed towards recording their worst performance in many years, according to a recent report by research firm Omdia, which expects a sharp decline in shipments during 2026.
According to the report, shipments of AMOLED screens for smartphones are expected to drop to about 778 million units in 2026, representing an annual decline of about 7% compared to the previous year, at a time when pressures on manufacturers are increasing due to rising component costs and slowing global demand.
High costs pressuring the market
Omdia primarily attributes this decline to rising memory prices and other manufacturing components, which have led to increased production costs, and consequently pressure on final sale prices, negatively reflecting on demand levels, especially among Chinese firms, which are among the biggest players in the smartphone market.
The company notes that these price pressures have made many brands more cautious in their production and expansion plans, which directly reflected on AMOLED screen orders.
Apple out of danger
Conversely, Omdia sees Apple as being in a relatively better position, with expectations of its ability to capture a larger market share during 2026, supported by several factors, most notably high profit margins and a more stable semiconductor supply chain.
The research company also expects that the price difference between Apple devices and their competitors will increase next year, giving the American company greater room to adopt a bolder sales strategy, without being significantly affected by rising costs compared to its competitors.
Economic and geopolitical factors exacerbate the crisis
The reasons for the decline are not limited to memory prices and components only, as Omdia points to macroeconomic factors playing a pivotal role in the current scenario.
Continued geopolitical tensions and global economic pressures have contributed to rising energy prices and disrupting supply chains.
This is compounded by rising prices of petrochemical raw materials, and increased shipping and transportation costs, creating an unfavorable environment for the growth of the smartphone market generally, and consequently a decline in demand for AMOLED screens.
Unprecedented decline in certain categories
The report reveals that flexible AMOLED screens are heading towards their first decline in several years, marking a notable shift after a long period of continuous growth.
As for rigid AMOLED screens, they are expected to continue contracting for the second consecutive year, a clear indication of the expanding scope of the crisis within the sector itself.
A bleak picture for the coming stage
Ultimately, Omdia’s report paints an unpromising picture for the future of AMOLED screens in the near term, with continuing economic pressures, rising costs, and slowing demand.
While a limited number of companies like Apple may be able to withstand or even benefit from the scene, it seems that most market players, especially Chinese manufacturers, are facing a difficult year that could redraw the competition map in the smartphone industry.
