Institution Predicts that Smartphone Shipments Could Drop 13% in 2026 Due to Memory Chip Shortage

According to the latest research from IDC, soaring memory chip prices are pushing up costs so that the global smartphone market is set to experience its largest annual decline in 2026. Shipment projections have been significantly revised down from 1.26 billion units said in last year to 1.1 billion units, marking an anticipated year-on-year drop of 12.9%, which may be the steepest decline in history. To cope with rising component costs, smartphone manufacturers are reducing configurations, discontinuing entry-level models, and steering consumers toward high-end devices. As the crisis begins to stabilize around mid-2027, IDC forecasts a modest recovery of 1.9% in 2027, followed by a stronger rebound in 2028 with a 5.2% year-on-year growth.