Predictions for a Decline in Global Smartphone Shipments in 2026

SadaNews - Counterpoint Research has predicted a 2.1% decline in global smartphone shipments in the coming year.

This decline comes amid increasing pressure on demand, due to rising chip costs and supply chain disruptions.

The company explained that electronics supply chains have faced a shortage of traditional chips in recent months.

This is attributed to manufacturers shifting their focus towards advanced memory chips designated for semiconductors used in artificial intelligence applications.

Chinese Brands Most Affected

The "Counterpoint" report noted that Chinese smartphone brands, such as "Honor" and "Oppo," are likely to be the most affected by this decline.

The impact is particularly evident in the low-cost phone segment, due to tight profit margins and the difficulty of passing on price increases to consumers.

Increasing Pressure from the AI Sector

In a related context, the research company pointed out that the growing demand for memory chips from artificial intelligence companies is exacerbating the pressures on the market.

It noted that Nvidia's move to use memory chips designed for smartphones in AI servers could lead to a doubling of server memory prices by late 2026.

Counterpoint sees this shift as reflecting a structural change in the priorities of the semiconductor industry.

Its impact on the smartphone market is likely to persist, amid increasing competition among various sectors for chip components.