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Memory Crisis to Trigger Massive Smartphone Market Slowdown in 2026

Memory Crisis to Trigger Massive Smartphone Market Slowdown in 2026

Summary

The International Data Corporation (IDC) predicts a significant drop in smartphone shipments by 12.9% in 2026 due to a memory shortage affecting the consumer electronics industry. The shortage is expected to impact small businesses and low-end smartphone vendors the most, while major brands like Apple and Samsung may increase their market share. Some regions, including the Middle East and Africa, could see a larger decline in smartphone shipments.

Key Facts

  • IDC predicts smartphone shipments will fall by 12.9% in 2026.
  • A memory shortage is causing problems for the entire consumer electronics industry.
  • Small businesses and low-end smartphone makers will be the hardest hit.
  • Major brands like Apple and Samsung are expected to handle the crisis better.
  • The Middle East and Africa could see a 20.6% decrease in smartphone shipments.
  • Memory prices should stabilize by mid-2027, but are unlikely to return to previous levels.
  • The entry-level market (phones under $100) is expected to become unsustainable.
  • The smartphone average selling price (ASP) could rise to $523 this year.

Source Information