Smartphone market faces decline as memory costs rise

The global smartphone market is facing a significant downturn due to rising memory costs and macroeconomic pressures. In the second quarter of 2026, global shipments fell by 7% year-over-year, with analysts forecasting a 12% decline for the full year. This contraction is largely driven by a surge in demand for RAM and NAND flash memory from the AI sector, which has increased component costs and reduced availability for consumer electronics.

In the United States, sales for major manufacturers like Apple, Samsung, Motorola, and Google fell by 4%, while the broader market saw a 45% drop as smaller brands struggled to manage rising costs. The low-end market has been particularly hard hit, with sub-$100 smartphone sales declining by 64% as manufacturers either raise prices or exit the segment.

Conversely, the high-end market remains a growth driver. Premium models now account for 29% of the market, as consumers increasingly prioritize long-term value and brand prestige. Apple and Samsung continue to dominate this segment. Additionally, the secondary market for refurbished and used devices is seeing growth, with sales expected to rise by nearly 10% this year as consumers seek more affordable alternatives to expensive new models.