Home / Technology / AI Demands Trigger Historic Smartphone Shipment Decline
AI Demands Trigger Historic Smartphone Shipment Decline
27 Feb
Summary
- Smartphone shipments projected to fall 12.9% in 2026.
- Average selling prices for smartphones to reach record highs.
- Sub-$100 phone segment to become permanently uneconomical.
Smartphone shipments are forecasted to experience a record decline in 2026, potentially plummeting by 12.9 percent. This significant drop is largely attributed to a critical shortage of RAM, driven by the escalating memory requirements of AI technologies. This situation is projected to result in the lowest annual shipment volume for smartphones in over a decade.
Concurrently, the average selling price for smartphones is anticipated to reach unprecedented levels, with an expected 14 percent increase. Experts predict that while memory prices may stabilize by mid-2027, they are unlikely to revert to previous lows. Consequently, the market for smartphones under $100 is expected to become permanently uneconomical.
