tech
February 27, 2026
Smartphone market poised for 'sharpest decline on record' in 2026
Two recent reports predict further declines in the smartphone market in 2026, as dwindling memory supplies continue to drive up prices of consumer electronics.
TL;DR
- Global smartphone market projected to see its sharpest decline on record in 2026, with shipments falling 12% year-on-year.
- AI infrastructure investments by hyperscalers are straining memory chip supplies, deprioritizing smartphone manufacturers.
- Chip shortages are driving up prices for components like RAM, impacting consumer electronics and data centers.
- Manufacturers may pass increased costs to consumers, leading to fewer new users and longer replacement cycles.
- OEMs are expected to prioritize mid- to higher-end models, potentially exiting the lower-end market due to profitability challenges.
- Larger players like Apple and Samsung are better positioned due to stronger supply chain integration and pricing power.
- The secondary and used smartphone market is expected to grow as consumers are priced out of new devices.
- The earliest inflection point for market recovery is anticipated in late 2027, dependent on increased memory capacity.
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