Chip crunch to curb smartphone output in 2026, researcher says


The consumer impact could be felt in several ways. One approach will be for companies to push users to more premium models, where the profit impact will be less severe, the research firm said. — Bloomberg

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.

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