According to industry tracker Counterpoint Research, global smartphone shipments are anticipated to experience a 2.1% decline in the coming year. This stands in stark contrast to the projected 3.3% growth expected for the current year. The primary culprit behind this downturn? A scarcity of memory chips, which is not only driving up production costs but also impacting overall output. In a notable revision, the firm has significantly downgraded its previous growth forecast for 2026 from 0.45%.

Counterpoint's Tuesday report further highlights that the global average selling price (ASP) of smartphones is poised to increase by 6.9% next year. This hike is a direct reflection of the soaring component costs, which are estimated to rise between 10% and 25%. Such escalations underscore the challenges facing the smartphone industry as it grapples with supply chain constraints and economic pressures.