Global Smartphone Shipments to Slightly Shrink in 2026 Due to RAM Shortage, Higher Component Costs: Report

The OnePlus 15 and iQOO 15 are two flagship smartphones that have been lately introduced in India. These handsets have been considerably costlier than their predecessors, the OnePlus 13 and iQOO 13. Similarly, studies have instructed that Samsung is prone to build up the cost of its upcoming Galaxy S26 sequence telephones, which can be anticipated to debut in early 2026. While this would possibly sign an industry-wide development, quite a lot of OEMs were caution that the emerging prices of obtaining reminiscence parts, like DRAMs, because of AI adoption, are forcing them to extend the cost of their units. Now, a marketplace analysis company has revised its previous estimates to focus on that the worldwide smartphone shipments may just shrink subsequent yr.

Budget Smartphones Could Be ‘Impacted Most Severely’

According to Counterpoint Research’s revised Global Smartphone Shipment Tracker and Forecast report, the worldwide smartphone shipments may just shrink via 2.1 p.c in 2026. The marketplace analysis company cites the emerging reminiscence scarcity and the emerging price of the invoice of fabrics (BoM). Counterpoint Research Director MS Hwang stated that finances handsets, priced below $200 (about Rs. 18,000), shall be “impacted maximum significantly”.

The BoM prices greater via about 20 p.c to 30 p.c at the start of 2025, consistent with the marketplace analysis company. Meanwhile, the costs of the mid-range and high-end smartphones have already greater via 10 p.c and 15 p.c, and this development may just proceed within the coming months.

In Q2 2026, the analysis company estimates that reminiscence costs would possibly upward thrust via an extra 40 p.c, which might lead to an additional build up in the price of fabrics via 8 p.c or greater than 15 p.c from the “present increased ranges”.

As extra DRAMs get redirected in opposition to gratifying the generative AI {industry}’s wishes, the smartphone {industry} will really feel the pinch. While the associated fee upward thrust will affect all handset makers, the cargo estimates of the “key Chinese OEMs”, together with Honor, Oppo, and Vivo, were revised most importantly.

This comes quickly after a document highlighted that OEMs are exploring other ways to scale back enter prices to take care of a wholesome margin with no need to extend the marketing worth in their telephones, as RAM costs proceed to upward thrust. Various tech companies are making plans to discontinue the 16GB RAM variants, whilst bringing the 4GB RAM choices again to the marketplace.