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Smartphone Shipments Set for Record 2026 Slump as AI Soaks Up Memory Supply

Analysts warn relief in DRAM supply is unlikely before mid- to late-2027.

Overview

  • IDC now projects global smartphone shipments will fall 12.9% to 1.12 billion units in 2026, the sharpest decline on record.
  • Counterpoint Research similarly forecasts about a 12% drop, taking volumes to their lowest level since 2013.
  • Surging AI data-center buildouts are diverting DRAM and high‑bandwidth memory, with suppliers prioritizing hyperscalers over device makers.
  • IDC expects the average selling price to jump roughly 14% to about $523 as OEMs favor mid and high tiers, leaving sub-$100 phones at risk of becoming uneconomical and accelerating consolidation.
  • Reports say Samsung won a 100% LPDDR5X price increase from Apple for iPhone 17 supplies, underscoring extreme pressure in memory contracts.