{"id":2646,"date":"2026-04-27T03:54:13","date_gmt":"2026-04-27T03:54:13","guid":{"rendered":"https:\/\/shiftfocus.my\/?p=2646"},"modified":"2026-04-27T03:54:14","modified_gmt":"2026-04-27T03:54:14","slug":"global-smartphone-sales-drop-to-a-two-year-low-as-memory-costs-rise","status":"publish","type":"post","link":"https:\/\/shiftfocus.my\/?p=2646","title":{"rendered":"Global Smartphone Sales Drop to a Two-Year Low as Memory Costs Rise"},"content":{"rendered":"\n

The global smartphone market has finally lost momentum.<\/strong><\/p>\n\n\n\n

After ten straight quarters of growth, Q1 2026 marked a sharp reversal, with worldwide smartphone shipments falling between 4% and 6% year-on-year<\/strong>, depending on industry tracking. While the exact figures vary, the bigger picture is clear: the market is slowing \u2014 and one major supply problem is at the center of it.<\/p>\n\n\n\n

The biggest culprit? Memory.<\/p>\n\n\n\n

A growing shortage of DRAM<\/strong> and NAND<\/strong> chips \u2014 two essential components inside every smartphone \u2014 is putting serious pressure on manufacturers. With supply tightening and costs climbing, brands are being forced to raise prices, and in some markets, those increases are hitting consumers hard.<\/p>\n\n\n\n

According to International Data Corporation, retail smartphone prices in some emerging economies have jumped by as much as 40% to 50%<\/strong>.<\/p>\n\n\n\n

That\u2019s a major problem for a market heavily dependent on affordability.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Why Memory Is Suddenly a Problem<\/strong><\/h2>\n\n\n\n

The issue isn\u2019t random \u2014 it\u2019s structural.<\/p>\n\n\n\n

Memory manufacturers are increasingly prioritising demand from AI infrastructure and data centres, where margins are higher and demand is exploding. That leaves smartphone makers competing for smaller supply pools at higher prices.<\/p>\n\n\n\n

At the same time, global energy costs remain unstable, and shipping expenses continue to rise amid ongoing tensions in the Middle East, making the supply chain even more expensive.<\/p>\n\n\n\n

For smartphone brands, the choices are limited: absorb the cost and hurt profits, or pass it to buyers.<\/p>\n\n\n\n

Most are choosing the second option.<\/p>\n\n\n\n

Apple and Samsung Are Holding Strong<\/strong><\/h2>\n\n\n\n

While the market as a whole slowed, not every brand took the same hit.<\/p>\n\n\n\n

Apple Inc. and Samsung Electronics were the only major smartphone brands to maintain growth in Q1, helped by stronger supply chain control and premium product positioning.<\/p>\n\n\n\n

Samsung remained slightly ahead in total shipments, boosted by strong early demand for the Galaxy S26 series and faster rollout of its A-series devices.<\/p>\n\n\n\n

Apple stayed close behind, with the iPhone 17 lineup continuing to perform well across major markets.<\/p>\n\n\n\n

The reason is simple: premium buyers are less sensitive to price increases.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Budget Brands Are Feeling the Pressure<\/strong><\/h2>\n\n\n\n

The biggest pain is being felt in the entry-level and mid-range market.<\/p>\n\n\n\n

Xiaomi Corporation was one of the hardest hit, seeing a noticeable drop in shipments globally. Its heavy reliance on lower-cost devices makes it especially vulnerable when component prices spike.<\/p>\n\n\n\n

OPPO and vivo also faced weaker international demand, although stronger domestic sales helped soften the impact.<\/p>\n\n\n\n

Meanwhile, newer challengers like Honor Device Co., Ltd. and Google\u2019s Google Pixel managed to gain ground, helped by overseas expansion and stronger AI-focused features.<\/p>\n\n\n\n

Huawei Is Quietly Rising Again<\/strong><\/h2>\n\n\n\n

In China, Huawei has reclaimed the top spot in the smartphone market, hitting its highest market share in years.<\/p>\n\n\n\n

Strong demand for the Mate series, local government support, and domestic sourcing have given Huawei a key advantage \u2014 especially at a time when imported memory costs are climbing.<\/p>\n\n\n\n

Its stronger local supply chain means less exposure to the same pricing pressure affecting rivals.<\/p>\n\n\n\n

That advantage is becoming increasingly important.<\/p>\n\n\n\n

What It Means for Asia<\/strong><\/h2>\n\n\n\n

Across Asia-Pacific, the divide is becoming clearer.<\/p>\n\n\n\n

Premium smartphones are holding up relatively well, especially in markets like China, India, and Japan. But the biggest challenge lies in Southeast Asia and South Asia, where affordable smartphones dominate sales volume.<\/p>\n\n\n\n

That\u2019s where rising prices hit hardest.<\/p>\n\n\n\n

Brands built on budget-friendly phones now face a difficult challenge: either raise prices and risk losing customers, or protect affordability and sacrifice margins.<\/p>\n\n\n\n

Neither option is easy.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

The Bigger Picture<\/strong><\/h2>\n\n\n\n

Analysts don\u2019t expect relief anytime soon.<\/p>\n\n\n\n

Memory supply is expected to remain tight well into 2027<\/strong>, meaning the smartphone market may stay under pressure for the next 18 months or more.<\/p>\n\n\n\n

For consumers, that could mean more expensive phones.<\/p>\n\n\n\n

For brands, it means tougher competition.<\/p>\n\n\n\n

And for the industry, it signals that the smartphone market\u2019s next battle may not be about features \u2014 but about who can secure the parts to build them.<\/p>\n","protected":false},"excerpt":{"rendered":"

The global smartphone market has finally lost momentum. After ten straight quarters of growth, Q1 2026 marked a sharp reversal, with worldwide smartphone shipments falling between 4% and 6% year-on-year, depending on industry tracking. While the exact figures vary, the bigger picture is clear: the market is slowing \u2014 and one major supply problem is […]<\/p>\n","protected":false},"author":4,"featured_media":2654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,24,12],"tags":[],"class_list":["post-2646","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-phone-accessories","category-tech-review"],"_links":{"self":[{"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/posts\/2646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2646"}],"version-history":[{"count":1,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/posts\/2646\/revisions"}],"predecessor-version":[{"id":2659,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/posts\/2646\/revisions\/2659"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=\/wp\/v2\/media\/2654"}],"wp:attachment":[{"href":"https:\/\/shiftfocus.my\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shiftfocus.my\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}