Global Smartphone Shipments to Drop 14% to 1.07 Billion in 2026 as Chip Costs Soar
Updated
Updated · The National · Aug 21
Global Smartphone Shipments to Drop 14% to 1.07 Billion in 2026 as Chip Costs Soar
3 articles · Updated · The National · Aug 21
Summary
1.07 billion smartphones are projected to ship globally in 2026, down more than 14% and marking the market's weakest year in over a decade.
AI-driven demand for chipsets and memory, compounded by Iran war-related logistics disruptions, has pushed component costs sharply higher and eroded handset affordability.
Apple, Google, Samsung and several Chinese brands have already raised prices, with more increases expected across upcoming product cycles.
Counterpoint said the squeeze is wiping out economically unviable models, especially at lower price points, signaling a structural pullback rather than a brief demand slump.
Samsung is still forecast to retake the global lead, edging Apple by just 0.1 percentage point of market share in the shrinking market.