Chip Crunch to Curb Smartphone Output in 2026, Researcher Says

Global smartphone shipments may decline 2.1% next year as a shortage of memory chips drives up costs and squeezes production, according to industry tracker Counterpoint Research.

That marks a dramatic reversal from an estimated gain of 3.3% this year, with the influential research firm slashing its projection for 2026 from a previous estimate of marginal 0.45% growth. The average selling price for handsets is set to rise 6.9% globally next year, reflecting a 10% to 25% jump in the overall cost of components, Counterpoint said in a research report Tuesday.