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Memory Shortage Pushes Smartphone Chip Shipments Down 15%

Soaring DRAM and NAND costs are forcing OEMs to secure long-term supply deals, shift budget models to lower-cost chips, raise phone prices.

Overview

  • Counterpoint data published July 29 showed global smartphone SoC shipments fell about 15% in the first half of 2026, signaling weaker device volumes.
  • MediaTek and Qualcomm saw the largest hits, each with more than a 25% year‑over‑year drop in shipments while Apple, Samsung, Google and UNISOC gained share.
  • DRAM and NAND prices spiked roughly 300% year‑over‑year in Q2 2026, prompting manufacturers to lock long-term memory contracts and accept higher component bills.
  • Rising memory costs are driving entry-level phones from 5G MediaTek chips to lower-cost 4G UNISOC platforms and accelerating investment in AI-capable proprietary SoCs.
  • Analysts expect pressure to continue through 2026 with memory prices unlikely to normalize before H2 2027, which should keep handset prices higher and shrink low‑margin models.