Smartphone market faces 16.7% shipment decline amid memory chip surge

smartphone market memory chip shortage NAND DRAM prices AI data centers foldable phones

The global smartphone market is facing a significant downturn, with IDC projecting a record 16.7% decline in shipments for 2026. This contraction is largely driven by a severe shortage and price surge in memory components. NAND and DRAM costs have increased by over 300% year-on-year as manufacturers divert silicon capacity toward high-margin AI data centers.

This supply crunch is fundamentally altering the market landscape. The era of budget-friendly smartphones is ending, as manufacturers can no longer absorb rising component costs. Consequently, the average selling price of a smartphone is expected to rise 27.6% to $581. The entry-level segment has been hit hardest, with Android shipments for devices under $100 dropping nearly 60% in the second quarter of 2026.

In contrast to the general decline, the foldable phone market is showing resilience, with shipments projected to grow by 12.6% this year. Additionally, the TV market saw a 3.6% growth in Q2 2026, though rising memory costs are expected to exert upward pressure on TV prices in the coming months.

Entities

Apple · Apple Inc. · IDC · Omdia · SK Hynix · Samsung · Samsung Electronics · Xiaomi · Xiaomi Corporation

Claims

What the coverage asserts, and how many sources carry each claim.

[● 7 SOURCES] Global smartphone shipments are projected to drop 16.7% this year. androidgeek.pt · www.hwupgrade.it · www.199it.com · www.blikk.hu · biz.heraldcorp.com · +2 more
[○ 1 SOURCE] DRAM wafer shortages may persist until 2030. gadgets.cnmo.com
[● 3 SOURCES] Android shipments are expected to fall 24.3% in 2026. androidgeek.pt · www.blikk.hu · www.khabarfoori.com
[● 2 SOURCES] Smartphone memory prices grew by more than 80% quarter-on-quarter in Q2 2026. www.ithome.com · technews.tw
[○ 1 SOURCE] South Korean DRAM export prices rose 401% year-on-year in the first three weeks of August. www.hd-tecnologia.com
[● 6 SOURCES] NAND and DRAM costs have increased by more than 300% year-on-year. androidgeek.pt · www.leak.pt · www.hwupgrade.it · www.199it.com · www.blikk.hu · +1 more
[○ 1 SOURCE] The P9 portable SSD offers sequential read speeds of up to 4,000 MB/s. www.xataka.com.mx
[○ 1 SOURCE] Foldable phone shipments are projected to grow 12.6% in 2026. biz.heraldcorp.com
[● 5 SOURCES] The average selling price of a smartphone is expected to rise 27.6% to $581 in 2026. androidgeek.pt · www.hwupgrade.it · www.blikk.hu · www.computerworld.com · www.khabarfoori.com
[● 2 SOURCES] Global TV shipments grew 3.6% year-on-year in the second quarter of 2026. www.advanced-television.com · www.telesatellite.com