Smartphone Shipments Drop 13.9% in 2026 Due to Memory Chip Shortages

Counterpoint Research projects 13.9% year-on-year decline in global smartphone shipments to 1.08 billion units in 2026. The drop exceeds February's 12.4% forecast due to memory chip shortages exacerbated by Iran-related supply chain disruptions. Entry-level and mid-range devices face severe production constraints as chip makers shift output to AI chips. Average wholesale prices rose 14% in Q1, with under-$150 models at risk of discontinuation. Wang Yang of Counterpoint says low-tier manufacturers struggle with rising costs and weak consumer spending.