Global Smartphone Market Set To Shrink 13% Due To Memory Chip Crisis: IDC

The global smartphone market is projected to experience a significant decline of 13% due to an ongoing crisis in the memory chip sector, according to a report by International Data Corporation (IDC). The forecast suggests that mobile shipments will drop to approximately 1.1 billion units in 2026, down from 1.26 billion in the previous year. This downturn marks a stark reversal of the gradual growth trend seen in recent years. The memory chip shortage has been exacerbated by various factors, including supply chain disruptions and increased demand for electronic devices during the pandemic, which have collectively led to inflated prices and constrained availability. As manufacturers struggle to secure essential components, consumers may face longer wait times for new devices, and the overall market may see reduced innovation as companies adjust their strategies in response to these challenges. This decline could have far-reaching implications for the industry, affecting not only major players but also smaller manufacturers who rely heavily on consistent supply chains for production. Analysts suggest that recovery will depend on improvements in chip production and supply chain stability, which could take time to materialize, leaving the smartphone market in a precarious position for the foreseeable future.