Smartphone market expected to shrink in 2026 due to rising costs
9to5Google • • general
Key Points:
- The global smartphone market is projected to shrink by approximately 2.1% in 2026, with all major brands expected to experience notable declines in shipments, according to Counterpoint Research.
- Low-end smartphones are anticipated to be the most severely impacted segment due to rising component costs driven by increased demand for AI-related chips and memory.
- Prices for low-end phones have already increased by 20-30% in 2023, and memory costs may rise by another 40% through mid-2026, leading to an overall increase in smartphone bill of materials by 8-15%.
- Average selling prices (ASPs) for smartphones are expected to rise by 6.9% in 2026, making devices
