Global smartphone shipments are expected to fall 2.1 percent next year, with rising chip costs likely to weigh on demand, market research firm Counterpoint Research estimated on Tuesday.
Electronics supply chains around the world have been hit by memory chip shortages in recent months, with manufacturers focusing on the latest AI chips.
The most affected will be the phone market with prices below 200 dollars, the total costs for components registering an advance of 20% – 30% since the beginning of the year, explained MS Hwang, director at Counterpoint, according to Agerpres.
Chinese smartphone brands such as Honor Device and Oppo would be more vulnerable, especially in the entry-level segment, due to low margins. “Apple and Samsung are best positioned to face the challenges in the coming quarters.”argues Counterpoint analyst Yang Wang.
The firm announced last month that Nvidia’s decision to use smartphone-like memory chips in its AI servers would double prices by the end of 2026.
With each AI server requiring more memory chips than a device, the change would lead to a sudden demand and the industry cannot cope, according to Counterpoint.
And market research firm IDC this month forecast a 0.9 percent decline in 2026 in global smartphone shipments, citing rising memory chip prices.
