Smartphone Industry Braces for Record Annual Decline as Memory Chip Shortages Deepen
Key takeaways
- Smartphone Industry Braces for Record Annual Decline as Memory Chip Shortages Deepen Fiona Craig Sun, June 7, 2026 at 11:11 PM GMT+7 3 min read iphone NEW SIZE ©Pexels.
- The latest forecast represents a deterioration from the firm’s February estimate, which had anticipated a 12.4% annual decline.
- The effects of the supply crunch are proving particularly severe in the entry-level and mid-range smartphone categories.
Smartphone Industry Braces for Record Annual Decline as Memory Chip Shortages Deepen Fiona Craig Sun, June 7, 2026 at 11:11 PM GMT+7 3 min read iphone NEW SIZE ©Pexels. The global smartphone market is on track for its largest yearly decline ever recorded, with device shipments expected to fall 13.9% in 2026 to approximately 1.08 billion units, according to new projections released by Counterpoint Research.
The latest forecast represents a deterioration from the firm’s February estimate, which had anticipated a 12.4% annual decline. Analysts attribute the worsening outlook largely to escalating shortages of memory chips, a situation that has been further complicated by disruptions linked to the conflict involving Iran.
The effects of the supply crunch are proving particularly severe in the entry-level and mid-range smartphone categories.