The smartphone industry is expected to experience a significant decline in 2026, with shipments forecasted to drop by 12.9 percent, marking the lowest annual shipment volume in over a decade, according to a report by the International Data Corporation (IDC).
The IDC report attributes the decline to the RAM shortage caused by memory-hungry AI giants, such as OpenAI and other similar companies, although none were mentioned in the report besides the general term. Meanwhile, the average selling price for smartphones is predicted to rise by 14 percent to a record $523. IDC senior researcher Na noted that while memory prices are expected to stabilize by mid-2027, they are unlikely to return to previous levels.
The decline in smartphone sales and the increase in average selling price will likely have a significant impact on the industry. As the IDC report suggests, the record-breaking decline in smartphone shipments will be a major challenge for manufacturers, and the rising average selling price may affect consumer demand. The industry will likely be watching closely as the situation unfolds and memory prices stabilize in the coming years.
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