Observed Signal · Feb 26, 2026 · Market Forecast · Source: techcrunch · Impact: 3/5 · Sentiment: Negative
Smartphone Shipments Set for Historic Decline Amid RAM Shortage
Analyst firms IDC and Counterpoint predict a sharp decline in global smartphone shipments in 2026 driven by a RAM shortage caused by rising demand from AI and data-center infrastructure. IDC forecasts a 12.9% year‑over‑year drop to about 1.12 billion units (from 1.26 billion in 2025), while Counterpoint estimates a 12% decline. The shortage is expected to push average selling prices up (IDC projects a 14% increase to a record $523), disproportionately harming low‑end and sub‑$200 segments, accelerating vendor consolidation, and boosting secondary handset markets. IDC expects RAM prices to stabilize by mid‑2027. Regional impacts include declines of more than 20% in the Middle East & Africa, ~10.5% in China, and ~13.1% in broader Asia Pacific (ex‑Japan).
Widespread hardware/memory shortages that materially reduce smartphone shipments and raise ASPs affect device availability, pricing, and market composition—impacting mobile reach, replacement cycles, and secondary-device markets relevant to mobile app distribution and advertising inventories.
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Key Takeaways & Evidence Grounding
- IDC forecasts smartphone shipments will fall 12.9% in 2026, from 1.26 billion devices in 2025 to about 1.12 billion.
- Counterpoint projects a similar decline of 12% for smartphone shipments in 2026.
- IDC expects smartphone average selling price (ASP) to rise about 14% to a record $523 in 2026 due to memory cost increases.
- IDC expects RAM prices to stabilize by mid‑2027.
- Counterpoint warns the sub‑$200 smartphone segment could see a ~20% shipment decline and notes LPDDR4 supply is shrinking faster than expected.
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Global RAM Shortage to Slash Smartphone Shipments by 12%
Rising RAM demand from AI compute and data centers has triggered a global memory shortage and sharp price increases. Analyst firm IDC forecasts smartphone shipments will fall 12.9% in 2026 to about 1.12 billion units (from 1.26 billion in 2025). Counterpoint issued a similar forecast, projecting a 12% decline and warning low-end segments will be hit hardest. IDC expects average selling prices (ASP) to rise ~14% to a record $523 and predicts regional shipment falls exceeding 20% in the Middle East & Africa, with China and Asia Pacific (ex‑Japan) down ~10.5% and 13.1% respectively. Firms expect LPDDR4 supply constraints, OEM launch delays, spec trade‑offs and second‑hand market growth; IDC forecasts RAM prices stabilizing by mid‑2027.
Smartphone Shipments Set for Historic Decline in 2026
Analysts warn the global smartphone market faces its steepest decline on record in 2026 driven largely by a worsening memory-chip shortage. Counterpoint Research projects a 12% year‑on‑year drop in smartphone shipments for 2026, with volumes falling to their lowest annual level since 2013. The International Data Corporation (IDC) estimates memory constraints could shrink the global PC and smartphone markets by about 11% and 13%, respectively. The shortage is being exacerbated as AI hyperscalers (cloud providers investing in large data centers) prioritize purchases of RAM and other memory, pushing up component prices and deprioritizing allocation to device makers. Analysts expect longer replacement cycles, higher device prices, growth in secondary/used markets, and a potential inflection only when new memory capacity comes online—possibly in late 2027.
Samsung: RAM Shortage to Worsen Through 2027
Samsung warned on its Q2 earnings call that the global RAM shortage will likely intensify in 2027 and remain tight until at least 2028. The company, which produces roughly a third of the world’s memory chips, said frontier AI labs are sharing medium- to long-term demand forecasts to secure supply, enabling Samsung to prioritise customers that sign long-term contracts and plan multi-year capacity ramps. Higher memory demand has pushed chip prices up, lifting Samsung’s semiconductor sales while squeezing margins in its smartphone and TV units. The shortage has prompted device price increases from Samsung and Apple and may lead to higher GPU prices from Nvidia, as memory makers shift capacity toward AI data centers.
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