Smartphone sales could be in for their biggest drop ever

The smartphone industry is projected to face a significant decline in 2026, driven by a RAM shortage linked to the demands of AI companies. According to a report from the International Data Corporation (IDC), smartphone shipments are expected to decrease by 12.9 percent this year, marking the lowest annual shipment volume in over a decade. Concurrently, the average selling price of smartphones is anticipated to rise by 14 percent, reaching a record high of $523. While IDC forecasts that memory prices may stabilize by mid-2027, they are not expected to revert to previous levels. This situation reflects the ongoing challenges within the smartphone market and the broader implications of resource allocation in technology.

• Smartphone shipments expected to drop 12.9% in 2026.
• Lowest annual shipment volume in over a decade.
• Average smartphone price projected to rise to $523.
• Memory prices may stabilize by mid-2027.
• Impact linked to demands from AI companies.