Why are smartphone shipments expected to decline in 2026?

Smartphone shipments are forecast to decline in 2026 due to a critical shortage of RAM, driven by the high memory demands of AI technologies.

What is the projected impact on smartphone prices in 2026?

The average selling price for smartphones is predicted to reach new record highs in 2026, with an expected 14 percent increase.

Will budget smartphones under $100 remain available?

The sub-$100 smartphone segment is projected to become permanently uneconomical due to the current market trends and memory price fluctuations.

Home / Technology / AI Demands Trigger Historic Smartphone Shipment Decline

AI Demands Trigger Historic Smartphone Shipment Decline

27 Feb

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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.

AI Demands Trigger Historic Smartphone Shipment Decline

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.