Smartphone Sales May Face Record Decline
The smartphone market faces unprecedented challenges in 2026, driven by a critical RAM shortage impacting shipments and pricing. A recent report from the International Data Corporation (IDC) highlights that smartphone shipments could drop by 12.9 percent this year. This decline would represent the lowest shipment volume recorded in over ten years.
Forecast for Smartphone Sales Decline
According to IDC, the average selling price of smartphones is expected to rise significantly. The forecast predicts an increase of 14 percent, bringing the average price to an all-time high of $523.
Impact of RAM Shortage
Nabila Popal, a senior researcher at IDC, states that while memory prices may stabilize by mid-2027, they are unlikely to return to previous levels. This prediction suggests a permanent shift in the market dynamics for budget smartphones, particularly those priced under $100.
Budget Smartphone Challenges
Francisco Jeronimo, IDC’s vice president for Worldwide Client Devices, notes that the RAM shortage will significantly affect budget-friendly Android smartphones. Manufacturers may be forced to increase prices, ultimately passing costs on to consumers. This situation could push smaller brands out of the market.
Market Shifts Among Major Brands
- Apple: Expected to launch the “iPhone 17e” soon, potentially offering insights into future trends.
- Samsung: Likely to gain more market share amid the rising costs affecting smaller competitors.
As the smartphone industry navigates these challenges, the competitive landscape may shift, favoring established players like Apple and Samsung. The overall market appears poised for a transformative period fueled by ongoing technological demands and economic pressures.
