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Memory Shortage Pushes Smartphone Shipments Down

Shifted chip capacity toward AI memory is driving higher RAM costs that are likely to keep component prices elevated into 2027–2028.

Overview

  • Global smartphone shipments fell 7% year‑on‑year in Q2 2026 and about 3% from Q1, according to an FDM CCS Insight report.
  • Average new handset prices rose roughly 13% quarter‑on‑quarter in Q2 as higher RAM and flash costs prompted manufacturers to raise retail prices and cut low‑margin models.
  • The organized secondary market is growing and is forecast to rise about 9% in 2026, but limited trade‑ins and strong demand are pushing refurbished prices higher.
  • Developed markets such as Europe and North America saw only low single‑digit declines while price‑sensitive emerging markets faced larger volume drops and sharp falls in entry‑level segments.
  • FDM now expects a roughly 12% decline in global shipments for 2026 and warns prolonged memory tightness will reshape OEM strategies, push consumers toward financing or used devices, and weigh on recovery prospects.