Global smartphone shipments expected to plummet in 2026 as memory shortages bite

A dire forecast from Omdia suggests global smartphone shipments will slump by 7% next year, piling on the woes of an already battered industry.

Memory crunch and geopolitical tensions to blame

The analyst firm points to ongoing shortages of RAM memory chips, which have driven up prices and put pressure on manufacturers' profit margins.

This, combined with the war in the Middle East, is expected to send shockwaves through the global economy, leading to higher energy costs, freight expenses, and volatility in foreign exchange markets.

Together, these factors will likely force smartphone vendors to hike prices, further eroding demand in what's already shaping up to be a dismal year for the sector.

Omdia's gloomy outlook echoes earlier predictions from rivals Counterpoint and IDC, who forecast declines of 12.4% and 12.9% respectively for this year.

If the worst-case scenario unfolds, Omdia warns that global smartphone shipments could tumble by a staggering 15%.